Commenting on a report by the Fraser of Allander Institute that increasing interest rates to combat rising London house prices will damage the Scottish economy, Business for Scotland Chief Executive, Gordon MacIntyre-Kemp, said:
“The intense focus of the UK establishment on London and the south east of England causes damage to every other area that is tied to it economically; not just Scotland but the other parts of the UK. We’ve seen in the past some of the damage caused by the overheating of the residential property market in London and it looks like we’re about to be affected by it again.
“Seeing the Fraser of Allander Institute warn that rising London house prices leading to increased borrowing costs for everyone will damage Scotland’s economy is a clear illustration of the failed policies of the UK Government in overheating the London economy at our expense and the expense of the rest of the UK.
“Scotland’s businesses, the drivers of Scotland’s economy, cannot afford to continue to be tossed around in the tempest of London volatility. It’s imperative that Scotland takes control of the economic levers which would allow the Scottish Government to provide a stable foundation for growth in our economy.”
NOTE – Fraser of Allander Institute report here – http://www.strath.ac.uk/media/departments/economics/fairse/Latest-Fraser-of-Allander-Economic-Commentary.pdf