As usual, inward investment has been dragged into the middle of a fierce political debate with both sides claiming that the other “threatens inward investment”. This time it’s the question of Scottish independence. At Westminster this week, David Mundell, the only Conservative MP in Scotland, argued that an independent Scotland would suffer economically and suggested there was a worry among potential inward investors over the uncertainty north of the border.
Undoubtedly, for every foreign investor who might be ‘concerned’, Scottish Development International will wheel out a dozen ‘satisfied’ investors who continue to expand in Scotland and may even support independence. There will be plenty of ‘he says, she says’ in the run up to a referendum, but there are a few interesting inward investment angles to consider that probably won’t get as much airtime:
- If Scotland became independent, all the English firms with a Scottish office would become ‘inward investors’ overnight… hence ‘boosting inward investment’
- Conversely, all the Scottish headquartered businesses would become ‘inward investors’ in the rest of the UK… ‘boosting inward investment’ in England too!
- Presumably, an independent Scotland would no longer be part of UK Trade & Investment? Good job then that SDI already has so many overseas offices.
- Will UKTI staff in Glasgow be the first job casualties of an independent Scotland or will they take on consular duties for English tourists that lose passports during Hogmanay?
If there is a breakaway, there will be millions of awkward questions… but for inward investors, the key issues will always be ‘where can I make a good profit?’, ‘how much will I get taxed’ and ‘can I get good people’… the colour of the flag that flies in the car park is far less important.
