Scottish bank boss slams ‘Brexit’ as remain campaign kicks off in Edinburgh

The head of one of Scotland’s biggest banks has warned that Edinburgh’s status as a major financial centre would be thrown into jeopardy and the nation as a whole would face higher shop prices, mortgages, credit card bills and flights, in the event of so-called ‘Brexit’ from the European Union.

Jayne-Anne Gadhia, chief executive of Edinburgh-based Virgin Money, issued the unequivocal warning as she addressed an audience at the launch of ‘Scotland Stronger in Europe’ campaign in the capital yesterday.

She was joined in her statements by other campaign chiefs who said Scottish votes could “make the difference” to keeping the UK in Europe.

Speaking as latest official figures showed that Britain’s trade deficit has grown to £13.3 billion – its biggest since the financial meltdown of 2008, Ms Gadhia said it would cost £3,000 a year for families if Britain was outside the European Union, against a £1 a day cost of remaining.

She said: “The economy will make the ultimate difference to peoples’ decision how to vote because this will affect the pound in peoples’ pocket.

“It will mean that when you’re in Europe and want to use a mobile phone you’re going to have to pay more, it will put the cost of flights up, it will put up prices in the shop, it will increase mortgage and credit card rates.

“At the end of the day it’s that sort of, ‘How does it affect me’ that’s really important.

“People will definitely be very materially worse off out of Europe.”

She also claimed that leaving the UE could impearl the UK’s status as a financial centre of excellence, echoing similar remain calls from industry giants such as Goldman Sachs and Bank of America.

“One of the key reasons for that is that London – and the benefits of that flow all the way through to Edinburgh and beyond – is such a key financial services centre for Europe and the world,” she said.

“The view very strongly is that if Britain votes to come out of the EU then that centre of financial excellence will move to Paris and Frankfurt.

“All of the investment that big companies have made, whether they’re global companies from overseas or our own companies, in the infrastructure employment and success of London and beyond would actually be untangled and would move to Europe.

“I think that disruption is very, very significant and I think would have a devastating effect on inward investment in the UK economy.”

John Edward, senior campaign spokesman, said the referendum vote on 23 June looks like being close across the UK, while Scots are more supportive.

He said: “We are putting all our supporters and activists on alert that the votes of the people of Scotland could make the difference in achieving a Remain result across the UK.”

Ms Gadhia’s intervention came as the principle of one of Scotland’s top universities warned that Scotland’s world leading academic centres would be “impoverished” by a UK vote to leave the EU.

Dundee University principal Professor Sir Pete Downes, who is also the convener of Universities Scotland, said: “After 27 years as a professor of biochemistry and seven years at the helm of one of our world class universities I believe Scotland’s universities are not only stronger in Europe, but would be impoverished if the UK were to leave the European Union.”

He added: “It’s not just about the money, although £86 million of investment in research over eight years in Dundee, a city with more than its fair share of economic problems, tells its own story.

“It’s about the people; talented people, from every European nation, many with skills in science, technology, engineering and maths, in relatively short supply in Scotland, flocking to the University to work and study in our laboratories and classrooms and bringing cultural richness and diversity to the city.

“On a larger scale it’s about collaboration and cooperation amongst many of the most enlightened nations in the world.”