{"id":43927,"date":"2014-06-19T12:13:41","date_gmt":"2014-06-19T12:13:41","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=c6907e36af10f7e95f120bc9a0600517"},"modified":"2014-06-19T12:13:41","modified_gmt":"2014-06-19T12:13:41","slug":"speech-chief-secretary-on-scotlands-future","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=43927","title":{"rendered":"Speech: Chief Secretary on Scotland’s future"},"content":{"rendered":"
\n

I want to start by saying a word of thanks to ICAS.<\/p>\n

Anton \u2013 you and your team do an amazing job.<\/p>\n

You are a powerful voice for your profession\u2026<\/p>\n

\u2026 not only in this country\u2026<\/p>\n

\u2026 but \u2013 with almost half of your membership outside Scotland \u2013 also in the UK and overseas too.<\/p>\n

ICAS also fulfils another very important function.<\/p>\n

In the past couple of years, you have been at the forefront of the debate on Scottish independence. <\/p>\n

Your expertise in financial and tax issues has shed light on some of the key uncertainties that would face Scotland as a separate state.<\/p>\n

Your work, for example, on tax administration or on pensions provision has been hugely relevant and insightful.<\/p>\n

I commend you for the very important public service that you have been providing. <\/p>\n

Today\u2019s conference is part of that.<\/p>\n

It\u2019s very aptly titled \u201cScotland\u2019s Future\u201d\u2026<\/p>\n

\u2026 as that is precisely what each and every one of us will be voting on come the 18th of September.<\/p>\n

This is the most important vote that will take in our lifetimes.<\/p>\n

It is arguably the most important vote in the history of the United Kingdom.<\/p>\n

The approach of the UK government has always been one of absolute respect for our right, as the people of Scotland, to make our own choice\u2026<\/p>\n

\u2026 while also providing all the relevant information needed to support people to make this important decision. <\/p>\n

People do want to know the benefits of being part of the UK are and the risks of breaking up are too.<\/p>\n

I believe that open, transparent and credible governments should always give people access to the full facts.<\/p>\n

You could call our approach \u2013 \u201cproject fact\u201d.<\/a><\/p>\n

Because over the past year and a half we\u2019ve published a series of 14 analytical papers.<\/p>\n

That\u2019s one and half thousand pages of original analysis\u2026<\/p>\n

\u2026 with cross-references to hundreds of academic articles and publications.<\/p>\n

They represent the most far-reaching and comprehensive study of the relationship between Scotland and the UK ever undertaken.<\/p>\n

We have looked at every aspect of the deep, multi-layered relationship which binds our countries together\u2026 <\/p>\n

\u2026 from economics and banking to security and defence \u2013 to name just a few topics.<\/p>\n

In every one of our studies we have looked at how Scotland and the UK benefit one another. <\/p>\n

We have always based our analysis on the best available data\u2026<\/p>\n

\u2026 utilising expert legal and technical knowledge\u2026<\/p>\n

\u2026 while also always encouraging full external scrutiny of our findings. <\/p>\n

This has been a hugely ambitious analytical programme.<\/p>\n

And today I am publishing the final conclusions of our analysis: <\/p>\n

\u201cUnited Kingdom, united future: Conclusions of the Scotland analysis programme.\u201d<\/a><\/p>\n

Of course, I would urge people to read every one of our reports\u2026<\/p>\n

\u2026 but if you only have time to read one of them \u2013 make it this one. <\/p>\n

\n

Read the summary paper.<\/a><\/p>\n<\/div>\n

In contains a wealth of information.<\/p>\n

All the arguments and all the facts\u2026<\/p>\n

\u2026 and quotes from many people \u2013 from presidents to business leaders\u2026<\/p>\n

\u2026 to help us make that important decision in September. <\/p>\n

The conclusions are clear and incontrovertible\u2026<\/p>\n

\u2026 Scotland is stronger, more prosperous, more successful and more influential as part of the United Kingdom. <\/p>\n

Nationalism would put at risk so much of what makes our country great. <\/p>\n

So today, I would like to set out five key arguments in favour of Scotland staying in the UK. <\/p>\n

First \u2013 as ever \u2013 is the economy.<\/p>\n

As you know only too well, the Scottish and UK economies are recovering strongly. <\/p>\n

In the past year, the UK has grown faster than any other major industrialised economy.<\/p>\n

Faster than the US, faster than Germany, than Canada, Japan, France or Italy. <\/p>\n

What\u2019s more, the recovery is balanced across sectors\u2026<\/p>\n

\u2026 with manufacturing, services and construction industries all growing at a good pace. <\/p>\n

We\u2019ve all had to take some tough decisions\u2026<\/p>\n

\u2026 so that as a country we could live within our means.<\/p>\n

That long-term economic plan is working.<\/p>\n

Scotland\u2019s economic plan doesn\u2019t have to way until after the referendum.<\/p>\n

It\u2019s already working here and it\u2019s working now.<\/p>\n

The deficit halved this year, new jobs being created at the fastest rate since records began.<\/p>\n

Over the coming year, the UK is expected to grow faster than any other G7 nation.<\/p>\n

Britain is bouncing back. <\/p>\n

And Scotland is bouncing back too.<\/p>\n

So why would anyone want to put the brakes on that?<\/p>\n

Our analysis \u2013 backed by a wide body of academic research \u2013 shows that if you put up an international border between Scotland and the UK, growth would be hit hard.<\/p>\n

That economic recovery, which we\u2019ve all worked so hard to secure\u2026<\/p>\n

\u2026 would be stopped in its tracks.<\/p>\n

It\u2019s easy to see why.<\/p>\n

By staying together, the Scottish economy can remain fully integrated with the rest of the UK economy.<\/p>\n

70% of Scotland\u2019s trade is with England, Wales and Northern Ireland.<\/p>\n

That\u2019s right \u2013 Scotland trades more with the rest of the UK than with every other country in the world combined.<\/p>\n

More than 16,000 people commute from Scotland to other parts of the UK every single day.<\/p>\n

But, as a separate state, it will be harder to do business.<\/p>\n

Over time, laws, regulations and tax regimes will start to differ\u2026<\/p>\n

\u2026 workers wouldn\u2019t be able to move quite so freely\u2026<\/p>\n

.. and the ability to trade with one another would be eroded. <\/p>\n

What\u2019s more, by staying together, our economies can support more jobs.<\/p>\n

Thanks to your efforts \u2013 in companies and firms of all sizes \u2013 the private sector has created over 2 million jobs across the UK since 2010.<\/p>\n

In Scotland alone, employment has increased by 140,000 since then and has reached at an all-time-high of 2.6 million Scots in work. <\/p>\n

And many hundreds of thousands of those jobs are in Scotland\u2019s key sectors\u2026<\/p>\n

\u2026 like energy, defence, or financial and professional services\u2026<\/p>\n

All these sectors thrive \u2013 and only can thrive \u2013 because we are part of the UK.<\/p>\n

Here in Edinburgh, for example, we have a financial and professional services sector which benefits from common regulation and strong links to markets, backed by a state with deep pockets and a strong currency.<\/p>\n

A low-carbon industry that benefits from a UK-wide approach to renewable energy\u2026<\/p>\n

\u2026 with costs supported by 30m consumers across our four nations.<\/p>\n

Oil and gas around Aberdeen, benefiting from a larger UK tax base, which provides stability and predictability.<\/p>\n

A defence industry where the UK government is the main customer for shipbuilding and technology.<\/p>\n

In all those key sectors\u2026<\/p>\n

\u2026 the UK provides a larger customer base, with greater purchasing power, within a more stable economy. <\/p>\n

My second argument is about our currency.<\/p>\n

As part of the UK, Scotland uses the pound \u2013 one of the world\u2019s oldest, strongest and most stable currencies. <\/p>\n

So we can keep that \u2013 a currency backed by 31m taxpayers and backed by the Bank of England. <\/p>\n

Or we could vote for the unknown\u2026<\/p>\n

\u2026 because the nationalists still don\u2019t have a workable plan for the currency. <\/p>\n

A currency union with the rest of the UK is out of the question.<\/p>\n

The Governor of the Bank of England \u2013 and many others \u2013 have explained in careful detail just how difficult it is to run a successful currency union.<\/p>\n

As we\u2019ve seen in the euro area, it simply would not work without a full political, economic and fiscal union, which, of course, is precisely what the nationalists want to dissolve.<\/p>\n

Even if Scotland tried to use the pound without a formal agreement\u2026
\n\u2026 an arrangement known as \u201csterlingisation\u201d \u2013 a Scottish version of Panama\u2019s currency arrangements\u2026<\/p>\n

\u2026 it would mean Scotland would not have a central bank to set interest rates\u2026<\/p>\n

\u2026 or protect financial institutions and pension providers from market instability. <\/p>\n

So, on the currency, a vote for independence would open up the flood gates to a sea of financial, economic and market uncertainty.<\/p>\n

The nationalist approach to this issue is not only hugely irresponsible\u2026<\/p>\n

\u2026 it\u2019s deeply inconsistent \u2013 for a party which so firmly believes in independence, it seems odd to want to give up control of the most fundamental aspects of economic policy.<\/p>\n

The third of my 5 arguments is about public services. <\/p>\n

By staying together, Scotland\u2019s national finances will be much stronger.<\/p>\n

Because as a bigger economy \u2013 a bigger country \u2013 we can pool resources and share risks.<\/p>\n

It means that we can more easily deal with unexpected shocks to our tax revenues\u2026<\/p>\n

\u2026 for example, we can deal with what everyone, apart some of the nationalists, knows is the steady and inevitable decline in North Sea oil and gas revenues. <\/p>\n

It means that we can use government spending to fund public services according to need not to location\u2026<\/p>\n

\u2026 for example, we can do more to support Scotland\u2019s more rapidly ageing population.<\/p>\n

And, crucially, as a bigger economy we can borrow more cheaply in the financial markets.<\/p>\n

Altogether, the long-term benefit of staying in the UK is worth \u00a31,400 per person each and every year.<\/p>\n

It is the UK Dividend.<\/p>\n

It\u2019s the money that will pay for better public services and a fairer society. <\/p>\n

To put it in context.<\/p>\n

It\u2019s equivalent to around two thirds of the total National Health Service budget in Scotland.<\/p>\n

It\u2019s almost as much as Scotland\u2019s whole education budget. <\/p>\n

To offset the loss of the \u00a31,400 UK Dividend, without cutting public spending\u2026<\/p>\n

\u2026 a new Scottish state would have to increase the basic rate of income tax from 20 to 28%, increase VAT from 20 to 26% and increase duties on alcohol, tobacco and fuel by about 40%.<\/p>\n

I know the Scottish government want to go on a further borrowing spree to pay for higher spending.<\/p>\n

Under their plans \u2013 Scotland would have one of the worst budget deficits in the developed world.<\/p>\n

So let\u2019s not go there.<\/p>\n

By staying together, Scotland\u2019s can have stronger finances and a more progressive society.<\/p>\n

The fourth argument is about Scotland\u2019s voice in the world.<\/p>\n

As part of the UK, we are more influential and we always have a seat at the top table.<\/p>\n

We are a permanent member of the United Nations Security Council. <\/p>\n

We are a member of the G7, G8 and G20. <\/p>\n

We are right at the heart of NATO.<\/p>\n

And as one the \u201cbig four\u201d members of the EU we are involved in all the key decisions.<\/p>\n

We can use our collective power and influence to make the world a better place\u2026<\/p>\n

\u2026 as the second largest aid donor in the world.<\/p>\n

\u2026 through disaster relief, work during humanitarian crises, and as part of peacekeeping missions.<\/p>\n

We can also use our global reach to support British people and British businesses\u2026<\/p>\n

\u2026 through our overseas network of embassies and trade promotion agencies.<\/p>\n

Contrast \u2013 under independence is great.<\/p>\n

No permanent seat at the UN.<\/p>\n

Not a part of the G7, G8 or the G20.<\/p>\n

As a separate state, Scotland would have to apply to join the EU.<\/p>\n

That would mean negotiating terms with all 28 EU countries \u2013 I can tell you one thing \u2013 it would be a very complex and lengthy process.<\/p>\n

And now think of the impact that years of uncertainty would have on your work and on your business.<\/p>\n

Even if Scotland does, eventually, negotiate its membership of the EU\u2026<\/p>\n

\u2026 you can be sure it would not be on the same favourable terms that the UK currently enjoys \u2013 thanks to our EU budget rebate, worth over \u00a33bn a year\u2026<\/p>\n

\u2026 as well as opt-outs to keep our own currency, control of our own borders and immigration policy.<\/p>\n

Hardly the most auspicious way to set up a new Scottish state\u2026<\/p>\n

\u2026 as a new country, finding its way in a turbulent global economy.<\/p>\n

Instead of that, we can retain the loud and persuasive voice that the UK rightly commands across the world. <\/p>\n

My final point is that if we vote to go it alone\u2026<\/p>\n

\u2026 there is no going back.<\/p>\n

Scotland would leave the UK and become a new, separate state.<\/p>\n

Separation would be permanent.<\/p>\n

And it would have profound implications for life in Scotland \u2013 and life in the rest of the UK.<\/p>\n

Think of the great institutions which have become part of our national life\u2026<\/p>\n

The Met Office<\/p>\n

The National Lottery<\/p>\n

The Post Office <\/p>\n

The Royal Navy and the Royal Air Force. <\/p>\n

The BBC.<\/p>\n

More than 200 UK public institutions serve the Scottish people\u2026<\/p>\n

\u2026 and if we vote to leave the UK, we vote to leave those arrangements behind.<\/p>\n

To me this illustrates just how irreversible our decision really is. <\/p>\n

This can, however, be easily avoided \u2013 by voting to stay in the UK.<\/p>\n

The UK gives Scotland the best of both worlds\u2026<\/p>\n

\u2026 the security and stability of a larger entity\u2026<\/p>\n

\u2026 with a strong Scottish Parliament too.<\/p>\n

Meaning we can find Scottish solutions to Scottish issues\u2026<\/p>\n

\u2026 while remaining part of a stronger United Kingdom.<\/p>\n

And this week all three main opposition parties in Scotland \u2013 Liberal Democrats, Labour and Conservatives \u2013 committed to going even further to enhance Scotland\u2019s devolution settlement.<\/p>\n

This is a new settlement, which would mean significant new powers to raise taxes\u2026<\/p>\n

\u2026 bringing accountability and greater financial responsibility at Holyrood. <\/p>\n

Where does all of that leave us?<\/p>\n

In my view.<\/p>\n

A stronger economy.<\/p>\n

A safer currency.<\/p>\n

Better public services.<\/p>\n

A stronger voice.<\/p>\n

And the best of both worlds. <\/p>\n

Five arguments, each one based on logic and on reason. <\/p>\n

I\u2019m a Treasury minister. <\/p>\n

And you\u2019re all in business or finance. <\/p>\n

So we all like logic and reason!<\/p>\n

But this is about much more than that. <\/p>\n

It\u2019s about our place in the greatest family of nations the world has ever seen.<\/p>\n

It is a history which has seen British ingenuity and endeavour emerge triumphant time after time.<\/p>\n

And over centuries, our four nations have worked together to change the world.<\/p>\n

Because of that, come what may, we can now face the future with confidence and optimism.<\/p>\n

I am as proud and patriotic a Scot as any nationalist.<\/p>\n

I love Scotland.<\/p>\n

Because of that, I want the best future for all of us in Scotland.<\/p>\n

And that means a United Kingdom with a united future.<\/p>\n

Thank you very much.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Danny Alexander, Chief Secretary to the Treasury speaks at ICAS Scotland\u2019s Future Conference<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/43927"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=43927"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/43927\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}