- John Allan, national chairman of the FSB
While everyone is getting even more worried about the U.K. economic prospects, pulling almost 17 billion pounds out of the nation's economy, the biggest drain of financial assets since the Lehman collapse in 2008, as Scottish independence is looming, small businesses remain calm and confident. The Federation of Small Businesses said its confidence index rose to +41 during the third quarter of 2014, reaching the highest level on record. 61% of the 2,137 respondents expect to grow in the coming year. This is despite a number of concerning risks hanging over the economy, including the on-going Ukraine-Russia crisis. This week is going to be all about Scottish independence vote, which will take place on September 18. Businesses have warned of economic chaos in case Scots will vote in favour of independence, with some believing that independence would be a mistake as grave as the Great Depression. Prime Minister David Cameron, who wants Scotland to stay in the union, has already pledged that he will not allow an independent Scotland to keep using the Pound, and ruled out any form of currency union. Meanwhile, Bank of England Governor Mark Carney said that a currency union is "incompatible" with sovereignty, adding that an independent Scotland would need to raise billions more pounds of extra reserves to fund a lender of last resort, or central bank, to ensure financial stability. Nobel laureate economist Paul Krugman warned Scotland against using the Pound without a currency union.
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