THE president of the CBI has stepped up his attack on independence, warning it could slow down the economic recovery.

Sir Mike Rake also said that a Yes vote would create a significant period of uncertainty around various issues, such as currency.

"We need to remember that we do have a very broad-base recovery," he said, "and inevitably a Yes vote would create quite a significant period of uncertainty around what will happen with currency, what will happen with membership of the European Union, what will happen with different cost structures and regulators that might [be] required in an independent country? This is not a good background to encourage investment."

The pro-independence group Business for Scotland has said that the CBI's reputation in Scotland had been "permanently damaged" following last month's row over its decision to formally register as a No supporter in September's referendum. Within days a number of high-profile organisations had resigned their membership in protest.

The CBI later announced after legal advice its registration was not valid. The Electoral Commission confirmed the application had been declared void. CBI director general John Cridland said it was an "honest mistake".