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Scottish independence: George Osborne to 'rule out currency union' | Scottish independence: George Osborne to 'rule out currency union' |
(35 minutes later) | |
UK Chancellor George Osborne is likely to rule out a formal currency union with an independent Scotland, government sources have told the BBC. | UK Chancellor George Osborne is likely to rule out a formal currency union with an independent Scotland, government sources have told the BBC. |
It comes after the prime minister said Mr Osborne will set out details of the coalition's position later this week. | |
The Scottish government has said it wants to retain the pound if there is a "Yes" vote in referendum. | |
A spokesman for Scottish Finance Secretary John Swinney said Westminster was trying to "bully Scotland". | |
The Scottish government has said a currency union is the "sensible option". | |
According to BBC political correspondent Tim Reid, if the Treasury was to formally rule out a currency union it would pile huge pressure on Scottish ministers over which currency an independent Scotland would use, ahead of the referendum in September. | According to BBC political correspondent Tim Reid, if the Treasury was to formally rule out a currency union it would pile huge pressure on Scottish ministers over which currency an independent Scotland would use, ahead of the referendum in September. |
On 18 September, voters in Scotland will be asked the yes/no question: "Should Scotland be an independent country?" | |
'Sign of panic' | |
Until now, the chancellor has said a currency union between Scotland and the rest of the UK - in the event of independence -is "unlikely". | |
Answering questions at a Downing Street news conference on Tuesday, David Cameron said: ''I think it would be very difficult to justify a currency union post-independence." | |
A spokesman for Mr Swinney said: "This is nothing more than an attempt by the Westminster establishment to bully Scotland, now that they have started to lose the argument on independence. | |
"It is a sign of panic that will backfire badly. | |
"No one will credibly believe these threats. They are simply another instalment in Project Fear." | |
He added: "People know that the Westminster establishment will say one thing before the referendum but behave far more rationally after a yes vote, when its self-interest will lie in agreeing a currency union with Scotland." | |
Meanwhile, MPs are due to discuss the issue of what currency Scotland would use if voters back independence on Wednesday. | |
Shadow business minister Ian Murray will lead a debate on the subject at Westminster. |