Opinion polls suggest that Scotland may just vote for independence this month.
Even if they don't Scotland now has taxing powers and is bound to use them.
The dawn of tax competition within the UK is upon us. In that case it's not monetary union that should worry us; I would suggest that's an issue capable of technical resolution. It's the end of fiscal union that could be really worrying if we see a race to the bottom - especially on corporation tax - that seriously reduces the amount of revenue available to all governments throughout the UK.
And oddly, this might be at its worst if Scotland remains within the Union but with strong taxing powers. Only strong EU laws on regional subsidies might stop the race in that case.
The reality is that whatever happens later this month a lot of thinking needs to be done and what is pretty clear is that very little progress has been made on it to date.
I'm not saying Scotland should not vote Yes. Or that it should vote No.
I am saying we need to think this through and so far I see very little evidence of that. My own contribution, made in the case of Northern Ireland, is here.
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Tax competition is not something I read bothered you when making Trivial Pursuit in Ireland. Why do you seek to deny to others that from which you personally benefitted?
Over the last thirty years I have learned a lot
One of those things I learned about was the destructive nature of tax competition
It’s why I turned my back on it a very long time ago
A wise man learns from experience. Are you saying you don’t?
If they do vote yes, Scotland will never have true independence if they keep the pound. For true economic independence, they need their own currency.
Perhaps a Scottish currency could be pegged to Sterling?
Even if they vote yes it will take a long time for Scotland to be as independent from the UK as say France or Germany.
If they vote yes and it all goes wrong for them then I suspect that we will end up bailing them out. Look at what happened with Ireland.
It’s a pity that England isn’t having a referendum on leaving the UK. Support for that might be strong.