Scottish Referendum looks close, politicians panic and markets tumble. What if Scotland really does vote Yes?

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Following Alan Renwick’s piece (posted on this blog yesterday) suggesting Scotland could buck the referendum trend and vote Yes, Robert Hazell explores reactions to increasing uncertainty over the outcome and considers the implications of a Yes vote.

The Scottish independence referendum is now two weeks away, on 18 September. With the latest YouGov poll showing the No campaign’s lead narrowing, to just 53% against 47% it suddenly looks as though there is a real possibility that Scotland might vote for independence in two weeks’ time. This has caused panic at Westminster, it has spooked the markets, and it has finally got people south of the border thinking about the consequences, for Scotland and the rest of the UK.

First, the panic at Westminster. On 4 September the Guardian ran the remarkable story ‘PM could face calls to postpone UK election if Scots vote for independence’. The argument being advanced by some Conservatives was that Westminster should postpone the next UK election by 12 months in order to avoid the unstable prospect of a Labour government dependent on Scottish MPs, who would disappear part way through the next Parliament. The Guardian reported that

‘Well placed members of the government have already started to consult the laws on postponing elections. An Act of Parliament would have to be passed, but there are complicating factors. The Fixed Term Parliaments Act of 2011, which stipulated that the next general election would take place on 7 May 2015, would have to be repealed. The House of Lords would also be able to block the legislation … One former law officer said: “Parliament can change elections, it can do what it likes. But it would be difficult.”’

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