View more on these topics

Treasury chief secretary warns of risk to Scottish pensions

A yes vote for Scottish independence will result in households paying more for pensions and other financial products, Treasury chief secretary Danny Alexander will say in a speech in Edinburgh today.

The Financial Times reports Alexander’s speech will be used to reinforce the financial arguments for voting against Scottish independence in September, including a warning on uncertainty around currency, rates and regulation.

The Scottish government intends to try to continue to share the UK Pension Protection Fund, which compensates those whose pension schemes are linked to firms which have become insolvent, although it also set out the possibility of a separate Scottish PPF if required. 

Alexander will say that Scottish firms will not be able to use the PPF in the event of a yes vote.

He will add: “Creating an international border would reduce financial firms’ ability to spread risk and drive up the cost of financial products like pensions.”

In January, BoE governor Mark Carney said an independent Scotland could not keep the pound and be free to set its own taxes. Last month the Treasury backed this assertion.

Though the Scottish government’s fiscal commission working group has spoken out against the rejection of a formal currency union, Alexander will today dismiss any possibility that the Treasury would rethink its stance.

Alexander will say: “Our decision, taken in the best interests of Scotland and the rest of the UK, is final. No ifs; no buts.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm