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Scottish independence: George Osborne to 'rule out currency union' | Scottish independence: George Osborne to 'rule out currency union' |
(about 9 hours 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 came after the prime minister said Mr Osborne would set out details of the coalition's position later this week. | |
The Scottish government has said it wants to keep pound in a currency union if there is a "Yes" vote in referendum. | |
The deputy first minister claimed no currency deal would leave Westminster with the entirety of UK debt. | |
Nicola Sturgeon said the position did not bear scrutiny and was a campaign manoeuvre in a bid to "bully Scotland". | |
'Difficult to justify' | |
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?" | |
Until now, the chancellor has said a currency union between Scotland and the rest of the UK - in the event of independence - would be "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." | 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." |
Ms Sturgeon told BBC Radio's Good Morning Scotland programme that, in the space of a week, the Westminster establishment had gone from David Cameron's "love bombing" back to "bullying and intimidation". | |
She said: "It is a bluff, because if this was to be the position of the Westminster government then it would put them in a position that's at odds with majority public opinion in Scotland, it would put them at odds with majority public opinion in England. | |
"It would cost their own businesses hundreds of millions of pounds, it would blow a massive hole in their balance of payments and it would leave them having to pick up the entirety of UK debt." | |
The Scottish government has said Scotland should meet a fair share of the cost of servicing UK Treasury debt, but that "assets and liabilities" go together. | |
Ms Sturgeon said that no matter what Westminster said now, the reality would be very different if Scotland voted "Yes". | |
Meanwhile, MPs are due to discuss the issue of what currency Scotland would use if voters back independence on Wednesday. | 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. | Shadow business minister Ian Murray will lead a debate on the subject at Westminster. |