Scottish referendum Yes win will see big banks move to London

The Royal Bank of Scotland Group (RBS) and Lloyds Banking Group have both confirmed that they will relocate from their Scottish headquarters in the event of a Yes win in the referendum.

Both banks have confirmed that they have established contingency plans in the event of Scottish voters backing independence.

There are set to be political, financial and social ramifications if the 307-year union comes to a dramatic end next week when people go to the polls.

In a statement, RBS explained that there are a "number of material uncertainties arising from the Scottish referendum vote", which would, for example, have a notable impact on its credit ratings.

Additionally, it would transform the fiscal, monetary, legal and regulatory framework to which the bank is subject.

"RBS believes that it would be necessary to re-domicile the bank’s holding company and its primary rated operating entity (The Royal Bank of Scotland plc) to England," it said in an official statement.

"In the event of a Yes vote, the decision to re-domicile should have no impact on everyday banking services used by our customers throughout the British Isles."

In a similar release, Lloyds explained that it too would be shifting its focus to England, resulting in the creation of "new legal entities" that would be tied to the Bank of England.

The government welcomed both responses. It has, after all, a 25 per cent stake in Lloyds and owns 81 per cent of RBS.

"Lloyds’ contingency plan to relocate to London in the event of a Yes vote is understandable," a Treasury spokesman said.

"As a general matter, the government believes any company should be free to choose where to locate its base, in the light of what best suits the stability and competitiveness of its business."

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