Scottish independence: Should the CBI be worried about a Yes vote?

Business body the Confederation of British Industry (CBI) said it was concerned about the knock-on effect a Yes vote could have on defence; financial services; energy; food and drink and higher education. The BBC's Marianne Taylor and Jamie Ross examine these five areas to see who has voiced worry and who has expressed hope.

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1. Defence
BAE worker

The Scottish government would remove Trident nuclear weapons from the Clyde and establish a Scottish Defence Force with 15,000 full-time personnel and 5,000 reservists in the event of independence.

The money saved from Trident would be spent on childcare, First Minister Alex Salmond has said.

However, in a paper on defence in an independent Scotland, UK Defence Secretary Phillip Hammond said thousands of jobs would be lost and that defence of the UK would be harmed.

Defence contractors such as BAE and Babcock have also raised concerns about independence.

BAE said the Union "offered greater stability", while Babcock said a "Yes" vote could lead to "risk and uncertainty".

More reading....

BAE Systems: UK offers 'stability'

Babcock raises independence concerns

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2. Financial Services
Lloyds TSB sign

A number financial institutions, including Lloyds, Barclays and Standard Life have raised concerns about independence. They have asked questions about tax and regulatory systems, the currency and EU membership.

The Scottish government's White Paper has proposed cutting corporation tax and to share with the rest of the UK the Bank of England and some financial regulation services.

It also laid out plans to continue using sterling in a currency union with the rest of the UK, a position the UK Chancellor George Osborne and the other main Westminster parties have ruled out.

Governor of the Bank of England Mark Carney said a currency union would require some ceding of sovereignty in the event of an independent Scotland.

Credit ratings agency Standard and Poor's said it could be beneficial to an independent Scotland if the size of its financial sector was reduced.

More reading..

Standard Life quit plan sparks row

Banks: Yes vote a 'potential risk'

Carney warning over Scots pound plan

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3. Energy
lightbulbs

Oil and gas is central to the independence debate, with the Scottish and UK governments setting out competing visions for its future.

Both have accepted the recommendations of retired businessman Sir Ian Wood's report on the future of North Sea oil and gas.

Critics of independence claim an independent Scotland would be too reliant on volatile revenues from oil. The Scottish government disagree, saying the two oil funds it plans to create following a "Yes" vote would ensure the economy coped with such volatility and save for future generations.

Elsewhere, pro-Union supporters claim energy bills would rise in an independent Scotland, while the Scottish government says costs for consumers would go down as Scotland's markets for green energy expanded following independence.

More reading....

Rival North Sea oil visions set out

Expert looks at energy market claims

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4. Food and Drink
Scotch whisky

Scotland has a big food and drink industry which is seeing rising exports and an annual turnover of around £12.4bn.

The Scottish government's White Paper said that the UK's proposed EU referendum presents a threat to this growing industry, as it would risk losing the backing of the EU's trade agreements.

Moreover, 18% of Scotland's overseas exports are in food and drink, as opposed to 1.5% for the UK as a whole, so the Scottish government say that an independent Scotland could prioritise the industry.

However, the UK government's paper on business implications of independence says that Scotland's food and drink sector exports £24.5bn of annual exports to the rest of the UK, and independence would risk the continuity of that market.

More reading....

Independence no issue for Diageo

Institute hosts independence debate

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5. Higher Education
Students in lecture

In 2011/12, there were 167,365 full-time students in Scottish higher education institutions, with five universities in the world's top 200.

The UK government say that this is only possible through UK funding, stressing that Scotland secures 13.1% of the UK total of research grants, while only accounting for 8% of UK GDP, or 8.4% of the UK population.

However, the Scottish government has criticised the UK government's "increasingly market-driven approach to higher education". It says that in an independent Scotland, Scottish students would continue to get free access to higher education, while continuing to charge students from the rest of the UK.

Academics Together, a pro-Union group, say this would cause a massive funding gap. However, Academics For Yes say a "No" vote risks cuts in the Scottish block grant, and loss of access to EU funding.

More reading....

EU law risk over Scots tuition fees

Academics in pro-independence call

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  1.  
    Text 80295 09:59: Scottish Labour shake-up - Your Views

    Anon: Labour will never recover in Scotland because they are not listening to Scottish people. Jim Murphy, if elected, will reinforce WM control of the Scottish party. Is that going to woo Scottish voters - I think not.

    Ian Lyall: I've voted Labour all my life, but am now an SNP member... why has it taken umpteen years of Labour dominance in Scotland for them to suddenly waken up and promise the earth? They've had years to implement what they now advocate, why? Westminster is not the answer, and as for that arrogant Labour speaker!

    I Smith, Largs: People seem to not be able to differentiate between politics and the referendum. The referendum wasn't about party politics it was about staying in the UK or choosing to be independent. So it was perfectly sensible that all politicians, regardless of their party, were canvassing during the referendum.

     
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    09:49: Sarwar analysis Glenn Campbell BBC Scotland news

    Anas Sarwar believes his decision to create a contest for the post of deputy Labour leader in Scotland is in the "best interests" of his party.

    It also removes a potential problem for Jim Murphy's campaign to replace Johann Lamont as leader.

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    Some would have been reluctant to back an MP for the top job, while the deputy is also a member of the UK parliament.

    That combination would have left Labour without an elected leader at Holyrood until Mr Murphy was able to secure a seat.

    Now it will be possible for MSPs, MPs and even MEPs to compete for the deputy leadership.

    Some of those backing MSPs Sarah Boyack or Neil Findlay for leader might prefer a deputy from outside the Scottish Parliament, especially given that the next big electoral test is a UK general election.

     
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    Text 80295 09:38: Scottish Labour shake-up - Your Views

    I Smith, Largs: Why are all the 'supposed' ills of Scotland being blamed on the Labour Party? Who has been in power in Scotland for years? The SNP who can't accept they lost in the referendum.

    Sean from Edinburgh: Surely Jim Murphy will need a current MSP with a very large majority to step aside to ensure he has any chance of getting to Holyrood if recent polls are anything to go by?

    Kenny, Lanark: I think Labour will only rise again if they can show that they prioritise Scotland. For example, go a lot further for their devolution proposals, stick up for Scotland's position of being dragged out of Europe etc, instead of playing politics with the priorities of Scotland.

     
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    09:30: Findlay's pitch

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    Neil Findlay MSP

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    Mr Findlay described the latest polls by Ipsos Mori for STV and YouGov for The Times - which suggest the SNP could have many more MPs in Scotland than Labour after the general election, as "pretty dreadful".

    "I don't think we should pretend that they are not," added the Scottish Labour leadership contender. "That requires a political response. It requires us to have policies that people recognise, and recognise as Labour, and we are addressing their issues.

    "If we don't have that political response, then we are going to be in trouble."

     
  6.  
    09:24: Dugdale for deputy leader?

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  7.  
    09:15: Boyack's leadership bid

    Sarah Boyack will focus on "social, environmental and economic justice", should she become the leader of Scottish Labour, and will work on issues such as pay day loan companies, inequalities in housing, and fuel poverty.

    Sarah Boyack

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  8.  
    09:07: RBS probe

    Royal Bank of Scotland has set aside £400m to cover potential costs from an investigation into alleged manipulation of the foreign exchange market.

    RBS

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  9.  
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    "No, I'm not standing," she told BBC Radio Scotland's Morning Call.

    "I think there are going to be six candidates in the field and I'm looking forward to supporting one of them.

    Jenny Marra

    "I'm hoping that Kezia Dugdale decides to stand for the deputy leadership. I think she has many qualities that would be of great advantage to the Labour Party and the country at large.

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  10.  
    08:52: Tributes to Sarwar

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    Neil Findlay and Sarah Boyack made the comments on Good Morning Scotland, and also disagreed with a suggestion that Mr Sarwar, an MP, resigned to allow Jim Murphy MP to win the leadership contest and have a MSP as his deputy in Holyrood.

     
  11.  
    08:50: Tune in Morning Call's Kaye Adams

    With the Labour Party currently searching for a new leader in Scotland, a new poll suggests Scottish Labour would face political annihilation if there was a general election tomorrow. Can Scottish Labour come back from the dead?

    Meanwhile, a 75-year-old woman who had £10,000 worth of jewellery stolen from her house has given £20 to the burglar who wrote her an apology letter.

    If you're a victim of crime, would you forgive the perpetrator?

    The lines are open 0500 92 95 00 or text 80295.

    You can listen live to the programme here.

     
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    Edinburgh witch tour

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    mountain rescue

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    08:29: Halloween - Get Involved

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    Tweet using #ScotlandLive, email here or text a scary tale to 80295.

     
  15.  
    08:26: Paranormal festival

    Happy Halloween everyone.

    They are certainly getting into the spirit in Stirling as Scotland's first festival of the paranormal gets under way.

    Paranormal festival in Stirling

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  16.  
    @LadyM_McManus 08:25: Halloween pictures

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    Michelle McManus
     
  17.  
    08:22: Today's papers

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    The Herald and the Scotsman

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  18.  
    08:19: Scottish Labour shake-up

    Scottish Labour is seeking both a new leader and a new deputy leader following the resignation of Anas Sarwar.

    The Glasgow Central MP announced on Thursday evening that he was standing down from his deputy role.

    Anas Sarwar

    He is currently interim leader of the party following Johann's Lamont departure and will remain in that role until her replacement is announced.

    Contests for the leadership and deputy leadership will run concurrently.

    Mr Sarwar's resignation came after fellow MP Jim Murphy announced he was entering the leadership race against Lothian MSPs Neil Findlay and Sarah Boyack.

     
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    The father of a botanist from Argyll who went missing in Vietnam a year ago has appealed for anyone with any information to come forward.

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    Missing poster

    Dr Jim Taggart said it would take "very freak circumstances" for his son to be found alive.

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    08:05: Weather update BBC Scotland Weather Latest

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  22.  
    08:03: Miliband concedes Labour faces 'challenge'

    Ed Miliband admits that Labour faces a "big challenge" in Scotland as the process of finding a new Scottish leader continues.

    He was interviewed as he prepared to appear at a Labour function in Glasgow.

    Labour leader Ed Miliband

    Mr Miliband told the BBC he would work closely with whoever was elected as Scottish Labour leader.

    During Mr Miliband's visit to Scotland, two opinion polls were published which indicated a dramatic fall in Labour's Scottish support.

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  23.  
    08:00: Welcome Thomas McGuigan BBC Scotland News

    It's Friday and the latest instalment of Scotland Live as we bring you a comprehensive round up of the latest news, sport, travel and weather between now and 18:00.

     

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