- .BT is among the many telecom firms which say hike in prices is 'inevitable'
- .Comes as Asda and Next warn their prices will also rise if country leaves UK
- .Vodafone and O2 'in talks with BT' to announce joint warning ahead of vote
- .EE spokesman said company was keeping a 'close eye' on referendum
Phone companies have revealed the cost of using mobiles and land-lines will 'inevitably' rise if Scotland leaves the UK
Phone bills are set to rise for millions of Scots if the country votes for independence next week.
BT and a host of telecoms firms are to set out plans that mean higher costs for almost every Scottish family will be ‘inevitable’.
It comes on top of mounting evidence that the cost of living for families in Scotland will soar after independence.
Major stores including Asda and Next warned that prices on essentials such as bread, milk and children’s clothes will rise.
The boss of Iceland has now added his voice to growing concerns, saying he would ‘panic’ if Scotland voted Yes.
And figures published yesterday showed that fears of a split have led to more than £17billion being pulled out of the UK in the last month.
It is the largest amount of money moved out of Britain in a single month since the collapse of Lehman Brothers in 2008.
More than £127billion has been pulled out of the UK’s stock markets and debt markets so far this year, according to figures from consultancy CrossBorder Capital.
Swiss banking giant UBS also warned that Scotland’s economy could shrink by as much as 5 per cent if it votes to leave.
The cost of landlines, mobile phones and internet will increase in Scotland, a host of firms will say before the vote.
BT is in talks with mobile providers Vodafone, EE and O2 as well as TalkTalk about issuing a joint statement warning of the implications of separation. It will be released over the weekend or early next week.
The cost of installing broadband cables or mobile phone masts are already higher in Scotland because of the distances involved. Currently these are subsidised by the rest of the UK, but an independent Scotland would be likely to have its own separate pricing structure.
A draft of the letter was yesterday said to warn of ‘the inevitability of cost increases’.
Several companies are waiting to see the final wording before agreeing to sign.
The announcement adds to mounting evidence the cost of living for families in Scotland is likely to soar if the country chooses to leave the UK on September 18
The talks are being led by BT chairman Sir Mike Rake, who is also president of business lobby group the CBI.
BT, Vodafone, O2 and TalkTalk refused to comment but an EE spokesman said: ‘Independence is entirely an issue for the Scottish people. Any political changes could of course add complexity to our operations and for this reason we are keeping a close eye on the referendum.
‘We remain fully committed to our network, employees and customers in Scotland.’
A separate letter warning of price rises by a host of retailers is also set to be published before the vote on Thursday.
THE NEW COLOURS OF THE UNION?
The traditional white, red and blue of the Union Flag could be replaced by yellow, red and black if Scotland votes Yes.
The Flag Institute has drawn up a new design that shows the cross of St Andrew replaced by elements of the St David’s flag.
The flag institute has drawn up a design for a potential new flag if Scotland leaves the union
Written by Sir Ian Cheshire, boss of B&Q owner Kingfisher, the letter has also been signed by the chiefs of Marks & Spencer, John Lewis and Asda.
John Lewis chairman Sir Charlie Mayfield this week warned that the department store would be forced to pass on higher costs of operating in an independent Scotland.
Iceland boss Malcolm Walker, whose chain has 71 stores and a major distribution centre in Scotland and employs more than 2,000 people, said his first response to a Yes vote would be to ‘panic!’.
‘The consequences will be just massive,’ he told Channel 4 News. ‘To be perfectly honest with you, we didn’t take it too seriously.
'I don’t think anybody for one moment considered that there would be a Yes vote.’ Large Scottish banks including RBS and Lloyds have drawn up contingency plans to move their registered offices South.
UBS said an independent Scotland would shed jobs and tax revenues.
Economists at the bank said: ‘Until there is clarity over the currency arrangements and the banking system, Scotland is likely to suffer some degree of a credit crunch.
‘Scottish GDP would suffer a one-off contraction of somewhere between four per cent and five per cent as half of the banking sector moves to Britain before independence.’
A spokesman from Deutsche Bank said last night that ‘a Yes vote would go down in history as a political and economic mistake as large as Winston Churchill’s decision in 1925 to return the pound to the Gold Standard or the failure of the Federal Reserve to provide sufficient liquidity to the US banking system, which we now know brought on the Great Depression in the US’.
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