PM warns Scots economy will suffer in UK split

David Cameron has warned the Scottish economy will fall behind the rest of the world if voters back the SNP’s bid to break up the UK.

The Prime Minister has issued an impassioned plea to save the Union, claiming the increasingly global nature of trade means Scotland benefits from the UK’s global reach.

Reflecting on the fragile state of the economy, Mr Cameron said we are at a “critical moment in our United Kingdom’s history” and warned any split would damage not only Scotland’s but Britain’s competitiveness on the world stage.

The Tory leader who will arrive in Scotland this week to address the Scottish Conservatives’ conference also reiterated his promise to “discuss other powers” in the event of a No vote in 2014.

It is expected his conference speech will major on the strengths of the Union as well as the “practical case for keeping our United Kingdom together”.

Speaking ahead of the conference, Mr Cameron said: “I have no time for those who say Scotland could not function alone. Of course it could. But to me there is a clear, practical case for keeping our United Kingdom together.

“It goes like this. A global race is under way. The competition has never been hotter and the stakes have never been higher.

“The UK has every chance of succeeding and thriving in this tough new world. But to do so, we need to pull together.

“All of us. Whether we’re Scottish or English, Welsh or Northern Irish.

“In this debate, the nationalists have made a lot of claims about separation. So let’s look at them in turn.

“They’ve said that Scotland’s economy would grow faster if we split up. But look at the evidence. Scotland’s largest customer is the rest of Britain. That relationship exists because we don’t have any borders to get in the way.

“They’ve said that there would be no damage to Scotland’s trade if we went our separate ways. But look at the evidence. Britain has a contacts book built up over decades: why would you want to turn your back on that?”

He added: “And that’s not to mention everything else that makes us better together in this global race: the seventh largest economy in the world, the fourth largest defence budget in the world, a leading role in the G8.”

The Prime Minister turned his ire on the “Westminster isn’t working” theme of the SNP and Yes Scotland, saying: “Scotland has a devolved Government responsible for everything from schools to hospitals, from the police to councils.”

Addressing the issue of devolving more powers to Holyrood, the PM gave a much-needed boost to his Scottish leader Ruth Davidson by backing her U-turn on the issue.

In March, Miss Davidson angered grassroots supporters by promising more powers for the Scottish Parliament.

She revealed Mr Cameron had agreed to include an offer of extra powers for Scotland in the Tories’ 2015 general election manifesto if voters reject independence.

But the move was a major U-turn for Davidson, who fought her leadership campaign on a pledge that the current constitutional set-up would be a “line in the sand” for her. Mr Cameron said: “I’ve said that I’m happy to discuss other powers once the independence question is settled.”

The PM went on to argue that “on every count, the case for staying together is compelling”.

He continued: “This isn’t just about growth or GDP. It’s about the hopes and dreams of people who want the best for themselves, their families and the generations to come.

“It’s about the businesses we start here. The industries that grow here. The jobs our children will have.

“For me, the future of the UK is about the heart as well as the head. It’s not just about the pocket, it’s about the passion we feel inside too.

“Because together this Union has achieved so much. We won two world wars together. We abolished slavery together. We built the NHS together. If this is what we’ve managed to achieve in the past three hundred years imagine what we can do in the centuries ahead.”

He added: “So this is my message: we face a critical moment in our United Kingdom’s history. A moment of global challenge and competition. A moment to seize the future or give in to decline. And in this moment this crucial moment in our history I believe we go forward stronger if we go forward together.”