It is reported that a majority of Scots would like to become independent from the UK. The question would be what currency they would choose. They could set up a Scottish £, but it would be a tiny currency that might well require higher interest rates than Scots would be happy to pay. It might be easier for Scotland to adopt the Euro.
If they did do that, it is unlikely that they would ever be allowed to operate lower tax rates as does Ireland, which has attracted so much foreign investment and boomed Ireland’s economy.
(Irish Corporation Tax
There are three rates of Corporation Tax in the Republic of Ireland:
12.5% for trading income
25% for non-trading income
12.5% for small and medium-sized enterprises where the trading income does not exceed €253,948 (provision for marginal relief where income does not exceed €317,435).
The rate for Manufacturing, IFSC and Shannon Free Zone companies remains at 10%.)
John Redwood is looking at the possibility of lower tax rates for Scotland to lift the Scottish growth rate. If Cameron were to adopt a more detached relationship with the EU, these would be come possible, and Scotland would in time become a Celtic tiger.
Inside the UK Scotland would have a chance of EU independence and faster growth. On her own she would be too easily overpowered by Brussels, and forced to stay in the slow lane.