Political uncertainty is becoming more crucial a factor in business decisions, CBI President Sir Mike Rake will say in a speech to business leaders and senior politicians tonight.

Sir Mike will say that as the recovery becomes more certain, political uncertainty will slowly climb up the register of business worries.

He will say that three situations are of particular concern: the Scottish referendum, Britain’s place in the EU and the upcoming general election.

Sir Mike will say that the Scottish referendum poses the biggest potential risk to business confidence.

He will say:

“The decision on independence is, of course, for the Scottish people. But the effects of the decision will be felt by others, including businesses – not just in Scotland but in Wales, Northern Ireland and England.

“The CBI has the right and duty to ask the difficult questions about issues which affect our members’ interests and this country’s economic future. And we will continue to do so, without fear or favour.”

The CBI say that because Scotland is so closely integrated with the rest of the UK, drawing an international border between us would create costs for businesses and households on both sides of the border.

However, Dan Macdonald, chief executive of Edinburgh-based property investor Macdonald Estates, says that independence would create growth in Scotland:

“Full fiscal autonomy can equip the Scottish Parliament with the financial tools it needs to tailor policy and priorities to Scotland’s particular needs, to secure investment and stimulate growth in the economy, and to create jobs.”

Image by Simon Syon