Commenting on the economic impact of the outcome of today’s Scottish referendum, Yael Selfin, director in economics & dispute at KPMG, said:
"We saw the pound surge overnight and expect to see a stock market bounce, in response to the Scottish 'no' vote. While this may well be temporary, this gives a clear indication of the markets' positive view of the referendum outcome. Scotland united with the rest of the UK represents a larger market for businesses to operate in, cutting costs to customers and potentially improving productivity.
"In the short term, the reduced uncertainty should also support more investment in Scotland and beyond. While in the longer term, new powers to a devolved Scotland will provide an opportunity to shape its future to a significant degree.
"The removal of separation uncertainty also suggests interest rates are on course to rise in February, which will provide upwards support to sterling.
“Increased devolution to Scotland opens the door further to other UK cities and regions as the nation as a whole embraces a move towards greater regional powers. We have already seen major new City deals in Glasgow, Manchester and Leeds, giving more spending and planning powers to local communities and economies. The Scottish referendum has certainly acted as a precipitative force in this emerging shift in power.”
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.