Scottish independence: RBS chairman plans to keep bank HQ in Scotland but urges clarity on independence
RBS chairman Sir Philip Hampton. Picture: PA
THE Royal Bank of Scotland would still be based in Edinburgh should voters back independence unless as a result there were significant changes which harmed its business, the bank’s chairman Sir Philip Hampton told peers yesterday.
But giving evidence to the House of Lords economic affairs committee Sir Philip said both the UK and Scottish Governments needed to “give clarity” on what would happen should Scotland become independent.
He told peers that while there were no plans to move but he pointed out that just three to four per cent of the RBS group’s customers are in Scotland and he said that should difficulties arise then it would have to reconsider its 300 year connection with Scotland and seek alternatives.
During the Sir Philip was asked if RBS would remain a Scottish institution post-independence.
He replied: “The overriding requirement is to serve our customers and to produce the best value we can for shareholders. We have no intention or plan to relocate from Scotland.”
Sir Philip pointed out that even during the financial crisis the bank made clear it would remain the Royal Bank of Scotland and was “happy to be domiciled in Edinburgh”, which was “a good place to do business”.
However, he added: “If as a result of independence we found extra difficulties or cost pressures or whatever arising from that, then we would have to think about other alternatives.”
Yet Sir Philip made clear that at the moment there was “no clear rationale” for the bank to move, although he later added that corporation tax levels could make a difference.
Sir Phil also told the committee that “small countries don’t often have big banks.”
But he said while international money markets were concerned by the issue of a lender of last resort RBS had received support during the banking crisis from foreign governments’ including the 90 billion dollars from the Federal Reserve in the USA.
He said that RBS along with other banks was currently “trying to break the sovereign” link which would mean the question of the lender of last resort would no longer be an issue.
He also touched on the issue that RBS is 82 per cent owned by the taxpayer and said it was unlikely this would change by the time of the referendum.
However, he told members of the Lords that the division of RBS would have to be part of the discussions between the Scottish and UK governments along with other taxpayer assets should there be a vote for independence.
Meanwhile claims made by the SNP that independence would significantly boost growth were also dismissed by one of RBS’s senior executives.
Stephen Boyle, the head of group economic affairs for RBS, said that independence or staying in the union would make little difference and would be “economically neutral.”
He told peers that for the size of Scotland’s public sector to make a significant difference it would “need to be nearer the size of North Korea’s” instead of the two per cent difference it currently has with the UK.
- Scottish independence: Scots will lose British culture, warns Darling
- Walter Smith back on board as he agrees to become director at Rangers
- Scottish independence: Electoral Commission ‘is vital to ensure fair play’
- John McGlynn reveals how group email revealed extent of Hearts cash crisis
- Lords committee warns of potential legal challenge over independence referendum question
- Abercrombie & Fitch: The brand might soon open a store in Glasgow, but does its 'heritage' fit the city?
- Scottish Government urged to review smoking ban
- BBC Scotland presenter Jackie Bird on mend after life-saving surgery
- Scottish independence: Madeleine Albright warns of fragmented Europe
- Orange Lodge demands an apology for ‘sectarian slur’
"Business owner? - Claim your business and Advertise with us"
In association with qype logo
Looking for...
Featured advertisers
Jobs
Search for a job
Keywords: SearchMotors
Search for a car
Make Model Any Model Price from £0 £500 £1,000 £2,000 £3,000 £4,000 £5,000 £6,000 £7,000 £8,000 £9,000 £20,000 £10,000 £11,000 £12,000 £13,000 £14,000 £15,000 £16,000 £17,000 £18,000 £19,000 £22,500 £27,500 £30,000 £35,000 £40,000 £50,000 £75,000 £100,000 £250,000 Price to £500 £1,000 £2,000 £3,000 £4,000 £5,000 £6,000 £7,000 £8,000 £9,000 £20,000 £10,000 £11,000 £12,000 £13,000 £14,000 £15,000 £16,000 £17,000 £18,000 £19,000 £22,500 £27,500 £30,000 £35,000 £40,000 £50,000 £75,000 £100,000 £250,000 £500,000 SearchProperty
Search for a house
Weather for Edinburgh
Tuesday 13 November 2012
Today
Light rain
Temperature: 11 C to 14 C
Wind Speed: 24 mph
Wind direction: South west
Tomorrow
Light rain
Temperature: 4 C to 12 C
Wind Speed: 10 mph
Wind direction: South west