I know it’s not normal for professionals to talk about politics – one of the three great taboo subjects including religion and sex.
And this blog isn’t really about VAT, but because I wanted to have my say about the Scottish independence issue. Since the union of the crowns of Scotland and England in 1603, following the death of Elizabeth I and the accession of King James VI of Scotland to the English throne, as King James I of England and Wales, a decision by the Scottish people to become independent would be the most fundamental development for the United Kingdon.
I accept that it is up to the Scots to decide their own future, but I think it’s important for those of us south of the border to consider how this development would affect us.
That doesn’t mean interfering in the process. But we’re equally entitled to consider how Scottish independence would affect us.
However my over-whelming concern at this point in time is what seems to be a totally lack-lustre and negative campaign by the “Better Together” – or “no” – camp.
The “no” campaign is negative, placing too much emphasis on potential problems for Scotland if it leaves the Union
Honestly if I were a Scot, listening to the “no” campaign would have me running to say “yes”. From what I’ve seen the “no” campaign is patronising and scare-mongering.
The “no” campaign would be much more effective if it started to promote the real benefits of remaining as part of the Union and stopped with the scare-mongering about lost jobs and dealing with currency issues etc. Those are practical issues that the Scots would have to deal with and the Scots will undoubtedly find a way to manage such issues when and if necessary. However I suspect that most Scots will be making their decision based on their heart, not their head.
And I can, to a certain extent, understand the Scottish frustration about being ruled from London. I was born north of Hadrian’s Wall, just outside Newcastle Upon Tyne. Being closer to Scotland than London, it often felt as though politicians had no real idea of life north of the Watford Gap, especially the real hardships caused for families and communities when traditional manufacturing jobs were lost and the mining industry decimated. But I have a very strong sense of being English and can understand how Scots may feel about their own national identity.
The “yes” campaign is passionate, driven and POSITIVE
The difference between the “yes” campaign and and the “no” campaign is embarrassingly patronizing and negative. The “yes” campaing appeals to the heart of the Scottish people and will, I think, be particularly persuasive to younger people.
There are only a few months until polling day and if we want to persuade the Scots to remain part of the Union, then we need a much stronger and more positive and passionate “no” campaign. I’m not sure how this can be done, that’s for the politicians and the spin-doctors to work out. But there has got to be a better way of building on the positive benefits of being in the Union that is more than just jobs and economics.
And there’s one particular problem about this. I think that most English people would like Scotland to remain in the Union. But we’re always being told that it’s the decision of the people of Scotland and therefore aren’t encouraged to get involved in the debate. We don’t want to be accused of meddling in a decision that should be made by the people of Scotland. And that means that that the whole process is a bit like a divorce where one party ups and leaves without any proper discussion.
But unless the “no” campaign becomes more positive and less scare-mongering, there is a very real chance that Scotland will go away without the Scots realizing how much we want them to stay. Part of that argument does, of course, relate to economic and financial issues, but the real message has to be how much stronger we are as a united kingdom and how our differences make the union stronger.
So my message to any Scot who is reading this blog is that WE WANT YOU TO STAY IN THE UNION. We admire your strength, determination, humour, common sense and diligence and you’ll be missed if you leave.
And what about VAT?
So yes, what about VAT? There has been a lot of discussion about Scotland’s status as far as the EC is concerned, but from what I’ve read, it does seem that an independent Scotland would not be part of the EC. I assume that the country would probably want to join the EC, so will have to retain VAT. And I’m sure that one of the first acts of a newly independent Scottish government would be to seek membership of the EC at the earliest opportunity.
However, because Scotland would, in the meantime, be a non-EC country, there will be practical and economic implications for businesses involved with cross-border transactions between Scotland and the rest of the UK and other EC countries. In particular, movements of goods and services would no longer be subject to the EC rules. For example, businesses bringing goods to or from Scotland over the land border would have to pay VAT rather than take advantage of the VAT-free movements of goods between businesses in EC countries.
I know that this sounds like another bit of scare-mongering, but that isn’t my intention. VAT is an important issue for business owners and will also impact upon other parts of the Scottish population. And it will equally cause the same sort of practical problems for those of us south of the border when dealing with the movement of goods to and from Scotland.
I will certainly respect if the Scots’ desire for national independence wins the day. Dealing with VAT is only one practical issue for which they will find solutions, but as a VAT professional, I hope that they are aware of the potential VAT implications for Scottish businesses should they vote for independence.
Marie
May, 2014