BAE Systems boss warns Scottish independence could bring harmful business impact
A Scottish split from the UK could bring uncertainty and instability which will harm investment potential, according to the head of defence industry manufacturer and supplier BAE Systems.
Chief Executive Officer of the firm based in Barrow, Ian King, posted on an internal company blog about the “unhelpful” impact that a successful yes campaign in September could bring.
A particular problem area would be that pensions – King explained: “If Scotland became independent and subsequently joined the EU, our pension schemes, along with many other UK company schemes, may be caught up in EU regulations relating to cross-border pensions”.
Independence would also bring into doubt the potential to produce the next generation Type 26 frigate in Scotland, a venue the UK government is considering closely for the project.
BAE caused controversy in the country last year when it announced 835 of its 3,500 employees in Scotland would be laid off. This is a high proportion of the 1,775 job cuts across the board, especially when considering the company has an employee base of 80,000.
DIY supplier B&Q has also warned of the troubles likely to come about with independence, citing a ‘hibernation’ period of uncertainty while adjustments are made to things like VAT and currency.