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Share Price: 500.50
Bid: 499.75
Ask: 499.90
Change: -3.20 (-0.64%)
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Open: 498.00
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Britain pledges state funding to Scotland ahead of independence vote

Tue, 16th Sep 2014 07:42

EDINBURGH, Sept 16 (Reuters) - Britain promised to guaranteeScotland's high levels of state funding, granting Scots controlover healthcare spending in a last-ditch attempt to shore upsupport for the United Kingdom before Thursday's vote onindependence.

With polls showing the decision on the fate of the UnitedKingdom is too close to call, welfare spending and the future ofBritain's revered National Health System have formed a centralpart of nationalist Alex Salmond's case for secession.

In a deal brokered by former Labour Prime Minister GordonBrown, the leaders of Britain's three main political partiessaid they would retain the funding equation that sustains ahigher level of public spending north of the border.

"People want to see change," said the agreement, publishedin Scotland's Daily Record newspaper and signed by PrimeMinister David Cameron, Labour leader Ed Miliband and LiberalDemocrat leader Nick Clegg.

"A no vote will deliver faster, safer and better change thanseparation," the agreement said.

Scottish-born Brown, who has already outlined a timetable togrant more powers to Scotland, is taking a leading role intrying to convince wavering voters to shun independence.

Cameron, whose job is on the line if Scots vote to break theUnited Kingdon, warned on his last visit to Scotland that therewould be no going back and that any separation could be painful.

But London's rush to grant more powers to Scotland in anattempt to pull voters behind the union risks stoking angeramong both voters and lawmakers in England, Wales and NorthernIreland where such guarantees are unlikely to be given.

Seeking to tap into a cocktail of historical rivalry,opposing political tastes, and a perception that London hasmismanaged Scotland for decades, nationalists say an independentScotland could build a wealthier and fairer country.

Unionists say independence would needlessly breakup theUnited Kingdom and usher in years of financial, economic andpolitical uncertainty. They have warned that Scotland would notkeep the pound as part of a formal currency union. (Reporting by Guy Faulconbridge; Editing by Angus MacSwan)

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