Hard battle ahead, says wealth manager
City financier warns of ‘catastrophe’ under ‘SNP populism’
Independence is an “economic catastrophe threatening Scotland”, according to a City of London investment manager.
Mihir Kapadia (pictured), chief executive and founder of Sun Global Investments, said an independent Scotland’s deficit would be the highest in the EU.
This would present the country with a “hard battle ahead” if it chooses to go down the independence path.
In a circular issued to clients and the media today he said the independence campaign adds to the pressures facing both the UK and sterling after Downing Street confirmed that it has set 29 March as the date for notifying the EU that it is leaving.
Mr Kapadia, whose company focuses on emerging market opportunities, said: “The UK and sterling now have a dual threat to manage – the external dealings with Europe in preparation for Brexit and the internal dealings with Scotland to discuss the future of the Union.
“From a rational point of view, the major issue surrounding the call for Scottish Independence, is an economic catastrophe threatening Scotland.
“The North Sea oil is one of the most significant contributors to the Scottish economy, but since the last independence referendum in 2014, the price of oil has dropped from over $100 per barrel to $52 today.
“This has undermined the economic prowess of Scotland which currently has a deficit of £15 billion or 9.5% of GDP, which would be the highest in the EU.
“It is going to be a hard battle ahead if Scotland falls for populism under the SNP.”
The date of the Brexit notification was announced by the Prime Minister’s office.
Talks on the terms of the departure and future relations are not allowed under the Article 50 process until the UK formally tells the EU it is leaving.
Britain is scheduled to leave the EU in March 2019.
A Downing St spokesman said the government wants negotiations to start as soon as possible.