On September 18 2014 millions of Scottish will vote on whether they want their nation to become independent or remain part of the UK. But which way will the vote swing and how will that affect your business?
If the ‘Better Together’ campaigners win, we will wake up on Friday and it’ll be business as usual as far as we’re concerned. Then there is the ‘Yes’ vote. This will certainly have implications for the British economy.
Retailers and especially the financial sector have expressed concern over an independent Scotland. Sainsbury’s ex CEO Justin King stated prices will have to rise in order to absorb the extra costs that will incur because of the break up (i.e. transport costs that are currently spread across Great Britain and a potential change in currency). RBS have released a statement saying their HQ will move south if the outcome is ‘Yes’.
What does this mean for London businesses? In simple economic terms, the English market will be flooded by businesses that find it more feasible to operate out of England rather than Scotland. Supply and demand suggests office space in the centre of London that is already in short supply, will reach an even higher price level that will further put off start-ups and SME’s. London, with the most expensive office space in the world, would reach astronomical prices if the outcome were an independent Scotland (lets not get started on the exorbitant house prices).
What is a small business to do if a ‘Yes’ Vote is the outcome on Thursday? There are still options to keep your business in the heart of where it all happens (if you so wish) at prices that won’t discourage. Serviced offices/flexible offices are already a favourite for SME’s due to the low commitment contracts and favourable rates. The savings for SME’s in a serviced office space when compared with a Traditional office can be the difference between make and break. Another option for SME’s is a virtual office package that can become a quick and easy upgrade for any small business/start up. Virtual office packages typically offer a prestigious business address, mail forwarding services, a phone line with a dedicated reception team and much more.
So if the Scottish don their finest kilts and celebrate an independent Scotland with haggis and whiskey on Thursday, make sure your SME/start-up is prepared for the impending changes. If you would like to hear more about how a serviced or virtual office can give your business an upgrade, call us on 0203 638 6660, we will be happy to help out.