Relief as Scots vote No, but regional devolution debate ignites

FEARS of an economic meltdown sparked by a vote for Scottish independence have been abated after today’s clear majority for the 307-year-old Union to be preserved.

Japanese bank Nomura had forecast a “cataclysmic” outcome, but at 6.08am it was official, the Better Together campaign had triumphed with a clear margin of around 10%, winning by 55% to 45%.

With the three main party leaders clearly worried about the possible outcome late in what became an emotional and occasionally fraught campaign, more devolved powers were ceded to the Scottish parliament.

For anyone in business in the North West, the No vote is good news – who would have wanted to see the political landscape dominated for the next 18 months by rows over the currency, Scottish pensions and the location of nuclear submarines? Never mind a costly and complex financial cost of separating the two nations.
 
While the overall status quo has been preserved, the Scottish question has surely opened the door to more devolution to the English regions.

If Chancellor George Osborne’s vision of a “Northern Powerhouse” is to be delivered then more power, and money needs to be released from Whitehall to the regions to set their own economic agendas.

City Deals were a step in the right direction, but the stark truth is that the UK is still one of the most centralised democracies in the world, and that needs to change if Manchester, Liverpool and Leeds are to fulfil their potential as the economic powerhouses of the north.

The frankly ludicrous situation – known as the West Lothian question –  where Scottish MPs can vote on laws only for England, also needs to be addressed finally too.

So, while David Cameron is no doubt a relieved man today, there’s plenty for him to ponder as he surveys a familiar, but at the same time, a  new political landscape.

As the value of Sterling rallied after recent falls as the referendum approached, the business group The Institute of Directors said it was relieved at the outcome.

Director general Simon Walker said: “There can be no doubt that many businesses will breathe a sigh of relief that the prospect of a contentious currency debate and prolonged economic negotiations have been avoided, and yet we know that significant changes are still on the cards.”

He added: “We are now at the beginning of a national debate about economic devolution. The Scots started that debate, and now it’s time for all of us to contribute new ideas about how our nations, regions and cities are run for the benefit of the entire country.”

Simon Allport, senior partner at EY in the North West, said the region’s  business leaders must take part in the debate on local devolution.

“Although Scotland remains in the Union, change and further devolution of powers will still be forthcoming in the form of concessions from Westminster and greater control for Scotland.

“This will fuel discussions at local level on whether or not there should be further devolution within England and Wales, with Greater Manchester and the North West having been held up as potentially suitable destinations for powers in the run-up to the referendum. Business leaders across the region need to make sure they are a part of this debate.”

John Cridland, director general of the CBI, Britain’s biggest business lobby group, added: “This is a momentous day for our United Kingdom and this result will be greeted by a collective sigh of relief across the business community.

“Business has always believed that the Union is best for creating jobs, raising growth and improving living standards, and welcomes that the people of Scotland want to play an integral role in this internationally successful partnership.

“As the debate now moves to the question of further devolution, it is important that it does not undermine the strength of the single internal market and it is in the best interests of citizens living in England, Wales and Northern Ireland, as well as those in Scotland.”