Brown promises more devolution for Scotland

Former British prime minister Gordon Brown has vowed that major extra home rule powers will be put to the House of Commons by late January if Scots vote No in next week's independence referendum.

The Conservatives, Labour and the Liberal Democrats are to publish an agreed timetable for more devolution this week, but they had not been planning to publish legislation as quickly.

Faced with mounting concern within the No camp following an opinion poll that put Yes ahead by one percentage point, Mr Brown seems, however, determined to accelerate matters.

Under the Brown plan – which took No 10 off guard, but which it is ready to accept – legislation would go before MPs by January 25th – Burns Night, Scotland’s celebration of poet, Robert Burns.

“Quite simply, Scottish voters deserve to know to the fullest extent possible about how new powers as ambitious as possible will be delivered as soon as possible within the UK,” Mr Brown said.

The former Labour prime minister and former Liberal Democrats leader Charles Kennedy – both highly respected still in Scotland – will play a more public role until polling on September 18th.

Labour, the Conservatives and the Liberal Democrats each published devolution plans over the last six months, although they had not reached a deal between them.

Stronger parliament

Up to now, a succession of polls had reported that a majority of Scots would prefer to have a stronger Scottish parliament rather than independence if given a choice on September 18th.

Even if it is clear that Mr Brown is pushing the pace, there is no doubt now that Scotland will get more powers over income tax, welfare, housing benefits and borrowing powers if it votes No.

However, Scotland's deputy first minister, Nicola Sturgeon, has accused the No campaign of panicking, while first minister Alex Salmond said hundreds of thousands of people had already cast postal votes. The question now is whether the pro-union camp can get a hearing for its accelerated offer.

Last night, a TNS poll reported that the Yes and No camp were level-pegging – but it reported that 18 per cent had yet to decide, a far higher number than YouGov reported in its weekend numbers.

Markets spooked

In the first sign that the markets have been spooked by the possibility of a Yes vote, sterling fell by more than 1 per cent – its largest fall in over a year.

British government bonds also fell, while £3.5 billion was taken off the value of six London-listed companies with large businesses in Scotland, including RBS and Standard Life.

Former Labour chancellor Alistair Darling, who heads up the Better Together campaign, played down the significance of the moves on the market.

Saying it was inevitable so close to a referendum of such importance, Mr Darling told journalists in Edinburgh: “For as long as there’s uncertainty, you will get a bit of jitteriness in the system.”

However, other quarters in the Better Together campaign were more strident, saying that it showed the dangers of what could follow if Scots vote to quit next Thursday week. However, Yes Scotland argued the opposite, saying it highlighted the dangers of the British government’s declarations that it would not share sterling in a currency union with Scotland.

"Be afraid, be very afraid," Deutsche Bank analysts told investors in a note detailing the risks to the British economy and the future of the European Union if Scotland votes Yes.