Darling attacks referendum plan

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Chancellor Alistair Darling took a swipe at SNP plans for a referendum on independence, in a speech to the Scottish CBI.

He suggested the flagship bill in the SNPs third legislative programme was a distraction from tackling the economy.

Mr Darling also told his audience in Glasgow that Scotland's prosperity depended on remaining part of the UK.

He said he expected the UK economy to return to growth at the start of 2010 as part of a global recovery.

Mr Darling spoke to around 650 guests from the business world at the Glasgow Hilton Hotel.

He said: " "Given all that has happened this year, I find it strange that today some seem to think the priority is a referendum on the constitutional make-up of the UK.

"Priority now must be to maintain our efforts to get through this recession quickly and do whatever we can to keep people in jobs.

"I can assure you I will not be distracted - my priority will remain the economic prosperity of this country."

Fiscal stimulus

The Chancellor - and Edinburgh South West MP - told his business audience that despite the global turndown Scotland continued to export across the world, selling over £20bn of goods and services in recent years.

"That trade, impressive as it is, is dwarfed by Scotland's trade within the UK which amounts to about £36bn a year," he said.

He defended the government's massive borrowing, saying growth in the economies of France, Germany and Japan demonstrated the wisdom of fiscal stimulus.

But he cautioned against complacency, urging governments to follow through on commitments made at the London summit earlier this year on fiscal stimulus and financial sector reforms.

On government action to tackle tax havens - one of the agreements made at the G20 in April - the Chancellor said HM Revenue and Customs has requested details of 100,000 offshore accounts held at more than 300 financial institutions.

He said: "This will mean billions of extra unpaid tax returning to our country, with an expected billion pounds from our agreement with Liechtenstein alone."