In 2014, Scottish people will cast their vote in a referendum on their country’s future. If they vote Yes to independence, the 300-year old Act of Union with the rest of the UK would lapse and Scotland would emerge as an independent state. If they vote no , Scotland will continue its existence as part of the UK with its own devolved government. The decision the Scots will have to make is not a simple one. It will have far-reaching constitutional, political and social, as well as economic consequences. This report considers a number of economic aspects of separation, including: (i) Impact on the single market in the UK; (ii) International investment in Scotland; (iii) Location implications for medium and small companies; (iv) Scotland’s currency; (v) Role of the Bank of England if Scottish financial institutions needed emergency support; (vi) Regulation of Scottish financial institutions; (vii) Division of assets and liabilities; (viii) Underlying fiscal position of Scotland post-independence without a block grant transfer from Westminster; (ix) Membership of the European Union; (x) Defence arrangements. The economic implications of Scottish independence for Scotland and for the rest of the United Kingdom are not symmetrical. Broadly Scotland’s GDP is around one-tenth of that of the rest of the UK.