OpinionSep 19 2014

Blurred boundaries but now a clear path forward

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It is the morning after the night - no, wait, two years - before.

An invigorating national (even trans-national) debate became a definitive demonstration of democracy. I’m English with Scottish and Welsh ties and irrevocably suffused with the union; the ‘no thanks’ delivered on a record turnout is pleasing enough.

What’s more - and this may be the sub-three hours sleep and recent caffeine infusion talking - I think the most exciting exigencies of this whole process remain ahead of us. Here’s why.

This vigorous discourse over national borders blurred traditional political, cultural and social boundaries. It created strange bedfellows, odd couples and, at its last, has bequeathed us a constitutional conundrum.

Witness the once listless Labour prime minister drafted in by his old foe and incumbent Conservative prime minister to sway the debate, with unprecedented scope to pledge action on matters of state governance.

On the yes side also, witness Green Party candidates still ostensibly clinging to their dream of a low-carbon economic revolution urging their supporters to back an enthusiastically oil-dependant vision for independence.

Labour haemorrhaged supporters to ‘yes’; a fair number of once partisan Scottish National Party voters quietly said ‘no thanks’. I saw discussions where married couples and siblings were split asunder.

A nation united in division with some sore wounds to heal, you might think. Not so.

Many feel that the decisions taken in Westminster do not take account of their specific circumstances and so do not engage with the process

That the Scots can even have this debate will be an inspiration for many cessationist citizens of Spain and elsewhere. We embraced ours with open arms and the message was clear: change is necessary, inevitable, and presents a huge opportunity.

Close to 1.6m people from a population of 4.3m eligible voters countenanced a radical split from the United Kingdom. Listen to most ‘no’ supporters and the same frustrations were often shared, merely a different solution sought. The 86 per cent turnout was a demand to be heard.

It also throws into stark relief the pitiable election turnouts in recent European, local and even general elections across the UK, which most latterly dipped well below 50 per cent. The apathy is deafening.

Many feel that the decisions taken in Westminster do not take account of their specific circumstances and so do not engage with the process. Politicians are increasingly forced to make their pitch to the peripheral few with the most disparate views.

We can see this dynamic in financial services. An example: I’ve recently been arguing for action to curb London and the south-east’s housing market excesses, but in truth in many more provincial areas these problems and ‘bubbles’ simply do not exist. House prices are lower by a factor of many times and affordability is simply not an issue in the same way.

Elsewhere disparity in pay, employment inequality, living standards and a whole range of other demographic factors mean savings cultures vary wildly. Universal solutions are elusive and quixotic. Devolution, greater regional autonomy and a closer proximity to important power for most has been pledged and must now happen.

The Conservatives and the coalition offered greater de-centralisation and now an overdue constitutional overhaul has been set in train.

David Cameron promised this morning not just more powers for Holyrood but also an adequate answer to the ‘West Lothian question’ and autonomy across the regions, including a promise to start a discussion on greater autonomy for cities across England.

These changes have the potential to put people back in touch with politics and offer our industry as well as others the opportunity to shape more tailored solutions for their communities. In financial services there will also surely be cross border opportunities that can be easily exploited within what remains one country with one coherent regulatory framework.

Of course there will be bickering and recrimination along the way, but the people have spoken and the direction of travel has been set.

Maybe I need to calm down and have a good night’s rest. Maybe a hopeless, impotent compromise solution will be delivered that fails to take account of the real discord north of the border, or that increases inequity for other areas such as Wales (Barnett formula anyone?).

Largely, however, this will all be down to us. The energy of this campaign must be retained and catalysed across the wider UK. Financial services made a vital contribution in this referendum, and must do so again.

As one belated independence voter (and despite the despicable reaction of some still a British sporting hero) so famously said yesterday: bring it on!