British business lobby attacks Scottish independence

British business lobby attacks Scottish independence

(AFP)

London — Scotland's continued economic success is best achieved as part of the United Kingdom, Britain's biggest employers' organisation said on Wednesday, six months before an independence referendum.

Pro-independence supporters at a rally in Edinburgh, Scotland

The Confederation of British Industry (CBI) said it had reached the conclusion after analysing the Scottish government's legal argument for ending the more than 300-year-old union with England.

Scots are due to vote in the referendum on September 18.

"The Scottish government?s economic plan for independence does not add up, even taking into account oil and gas revenues," the CBI said in a statement.

"There is no credible plan for deficit reduction -- even though Scotland?s net deficit will be as large, as well as more volatile, than the rest of the UK; no clarity over what currency it will use; or its future relationship with the European Union."

The CBI concluded that Edinburgh's plan "fails to provide a coherent vision for how an independent Scotland would be better off economically from putting up barriers with its biggest export market -- the UK".

British Prime Minister David Cameron's government is urging Scots to reject independence, while the devolved Scottish administration of First Minister Alex Salmond is pushing for separation.

Cameron's Conservative-Liberal Democrat coalition has stated that it will not allow Scotland to keep using the pound if it votes to become independent.

?Keeping the pound is the best option for Scotland but that is only on offer through maintaining the union," CBI Director-General John Cridland added on Wednesday.

"The main UK political parties have ruled out currency union as an option, so we?re calling on the Scottish government to set out a credible plan B."

Several major companies have previously warned that uncertainty over the issue could have negative economic effects.

Meanwhile last month European Commission president Jose Manuel Barroso declared that it would be "difficult, if not impossible" for an independent Scotland to join the European Union.

Cridland added: ?An independent Scotland would also have to negotiate hard to get back into the EU, temporarily losing access to the world?s biggest trade area with huge economic consequences.

"Scotland?s economy is a real success story as part of the UK -- it has the independence and flexibility of devolution alongside the support of the union.

"The fate of Scotland is, of course, a decision for the Scottish people, but business is clear -- we are stronger together."