Scottish government officials are planning to hold an independence referendum to determine whether Scotland will continue to be a part of the United Kingdom but economists have said that the process will have an impact on the investor confidence in the region.

Economists at the Ernst & Young Scottish ITEM Club have warned that businesses are likely to delay their plans for investing in Scotland to wait for the results of the referendum that will determine the future of Scotland. They also said that uncertainty relating to the governance will impact the ability of the region to attract skilled workforce.

It is estimated that the gross value added (GVA) will be at 1.4 per cent in the previous year compared to a forecast of 1.8 per cent in December. On the other hand, the report also noted that the rising publicity to the process to be held in September next year will attract global investors to Scotland.

The Scottish Government has claimed that it has performed better than the UK as whole with higher capital investment and economic growth and lower unemployment.

But Ken Macintosh, Scottish Labour's finance spokesman, said, "This is a further sign that the SNP Government should be focusing on economic recovery rather than obsessing about the referendum. This should be taken as a plea from business to get on with the job of growing the Scottish economy now with the powers they have rather putting this on hold until after the referendum."

Source: Top News