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| Version 1 | Version 2 |
|---|---|
| Scottish independence: Treasury makes debt pledge | Scottish independence: Treasury makes debt pledge |
| (about 1 hour later) | |
| The UK Treasury says it will honour all UK government debt issued up to the date of the referendum on Scottish independence. | The UK Treasury says it will honour all UK government debt issued up to the date of the referendum on Scottish independence. |
| The move, announced on Monday, is aimed at removing the risk of default from any debt-sharing dispute between Scotland and the rest of the UK. | The move, announced on Monday, is aimed at removing the risk of default from any debt-sharing dispute between Scotland and the rest of the UK. |
| The Treasury said it will "in all circumstances" take responsibility for all UK government debt, should Scotland vote for independence in September. | |
| The debt is currently £1.4 trillion. | |
| The Treasury, in addition to its guarantee, however, added that an independent Scotland would still be expected to pay its "fair share". | |
| Scotland's first minister Alex Salmond has said today's debt pledge by the Treasury puts Scotland in "an extremely strong negotiating position". | |
| Pledge | |
| The move follows approaches from investors to the Treasury and the UK's Debt Management Office, says BBC Scotland business editor Douglas Fraser. | |
| The UK government has said it will not negotiate on independence ahead of the referendum, but it is having to put at least one pledge in place, our Scotland business editor says. | The UK government has said it will not negotiate on independence ahead of the referendum, but it is having to put at least one pledge in place, our Scotland business editor says. |
| A perceived increase in the risk of default could push up borrowing costs in the run-up to the vote, he adds. | A perceived increase in the risk of default could push up borrowing costs in the run-up to the vote, he adds. |
| The Treasury does not believe the pledge will weaken its negotiating position on the share of debt that a newly-independent Scotland would inherit. | The Treasury does not believe the pledge will weaken its negotiating position on the share of debt that a newly-independent Scotland would inherit. |
| The Scottish government anticipates taking on such a share, but it has warned that it may not do so if Whitehall refuses an alliance on joint control of the pound. | The Scottish government anticipates taking on such a share, but it has warned that it may not do so if Whitehall refuses an alliance on joint control of the pound. |