Close Neighbours ? Reactions to the Scottish Independence Debate in the North East and Cumbria
Given a shared border history, a number of common economic and social characteristics, and often intense economic rivalries, it is not surprising that the possibility of an independent Scotland is regarded as a key issue in in the North East of England and Cumbria. Indeed, the recent UK Government announcement that Scotland would not be able to keep the pound, the increase (in some polls) of the those likely to vote ‘Yes’, and the ‘mood music’ – emanating from Holyrood – which sees the North of England variously referred to as our close cousins, neighbours or friends, has served to stir up a hornets nest just south of the border.
Some are genuinely fearful that a more powerful Scotland will seriously undermine economic fortunes south of the border. A number of business leaders and MP’s are anxious that a reduction in the rate of Corporation Tax north of the border would ensure that they further enhance their competitive advantage with regard to inward investment, to the detriment of jobs and economic growth in North East and Cumbria.
There is also a good deal of anxiety about the implications, for Newcastle Airport in particular, of an independent Scottish Government committing itself to an immediate 50% reduction in Air Passenger Duty. There are also fears that cross-border businesses would suffer from any variation in exchange rates and from the potential administrative costs of dealing with two different currencies.
Others, including some local authority leaders and senior council officers, are more positive, and stress the opportunities for greater cross-border economic collaboration with a more powerful Scotland. This collaboration could be in terms of both promoting sector-based collaboration in areas of mutual benefit, such as transport, tourism, connectivity, skills and employment, and place-based collaboration, where the local authorities adjacent to the border come together in a Borderlands partnership.
Over and above collaboration to promote economic development, there is also the crucial issue of ‘voice’, where the North of England could join with Scotland to provide a counter-balance to the domination of the London and the South East. This is particularly important in the North of England, where the post-2010 abolition of the Regional Development Agencies and Government Offices has undermined the capacity for regional voice and reduced the resources and strategic cohesion needed to plan for regional economic growth.
Indeed, one outcome of the September the 18th referendum may be to put back onto the political agenda the issue of more power for the English regions, and (whisper it quietly) the case of an elected regional assemblies.
by Prof Keith Shaw