The UK Government has claimed plans for an independence referendum are a ”self-inflicted wound” on the Scottish economy.
The claim by Chief Secretary to the Treasury Danny Alexander marks an escalation in the row with the Scottish Government over the uncertainty surrounding Scotland’s constitutional future.
UK Chancellor George Osborne has already claimed companies are being put off investing in Scotland due to fears the country will break away from the UK.
The suggestion, which was rejected by the SNP Government, led to accusations the UK Government is attempting to ”sabotage” the Scottish economy.
Finance Secretary John Swinney questioned if the comments were designed to stave off criticism in England about coalition policies.
He pointed out that North Tyneside Council’s Tory mayor last month warned Scotland was at a competitive advantage over the north in England in attracting inward investment.
Linda Arkley was spurred into action after North Tyneside lost out on an Amazon customer service centre like the one opened in Dunfermline last week.
The Dunfermline plant and other Amazon investment in Scotland were secured with the assistance of a regional selective assistance grant from the Scottish Government, while the equivalent scheme south of the border was scrapped.
In a response to Mr Swinney, Mr Alexander cited reports from CBI Scotland and finance group Citigroup that claim business confidence is being dented by the plans for a referendum.
He said it was ”clearly ridiculous” to suggest the UK Government was attempting to damage the economy.
Mr Alexander added: ”At a time when there are severe headwinds facing the whole UK economy, the last thing the UK needs is a self-inflicted wound by the Scottish Government.
”The UK Government believes that investors should continue to have confidence in Scotland as a place to invest.
”We will continue to do all we can, within difficult fiscal constraints, to support economic growth in Scotland, but it would be helpful if the Scottish Government recognised that its core policy commitment is causing real uncertainty and took urgent steps to deal with this issue.”
First Minister Alex Salmond said the referendum will be held in the second half of the current parliament, but has declined to give an exact date.
There have been calls for the UK Government to end the uncertainty by calling an immediate referendum.
Photo David Jones/PA Wire