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| Scottish independence: 'Yes' vote means leaving pound, says Osborne | Scottish independence: 'Yes' vote means leaving pound, says Osborne |
| (35 minutes later) | |
| UK Chancellor George Osborne has said a vote for Scottish independence would mean walking away from the pound. | UK Chancellor George Osborne has said a vote for Scottish independence would mean walking away from the pound. |
| He said there was "no legal reason" why the rest of the UK would want to share sterling with an independent Scotland. | He said there was "no legal reason" why the rest of the UK would want to share sterling with an independent Scotland. |
| The Scots government wants Scotland to retain sterling as part of a currency union with the rest of the UK in the event of a referendum "Yes" vote. | The Scots government wants Scotland to retain sterling as part of a currency union with the rest of the UK in the event of a referendum "Yes" vote. |
| The Scottish government's Nicola Sturgeon said Mr Osborne was trying to frighten and intimidate Scotland. | |
| Ahead of the independence referendum on 18 September, Mr Osborne set out his position during a speech in Edinburgh, as he published the latest UK analysis on the issue. | Ahead of the independence referendum on 18 September, Mr Osborne set out his position during a speech in Edinburgh, as he published the latest UK analysis on the issue. |
| A new Treasury paper on the currency said: | A new Treasury paper on the currency said: |
| Liberal Democrat Chief Secretary to the Treasury Danny Alexander supported Mr Osborne's position, along with Labour shadow chancellor Ed Balls. | |
| Mr Osborne said: "The pound isn't an asset to be divided up between two countries after a break-up like a CD collection. | Mr Osborne said: "The pound isn't an asset to be divided up between two countries after a break-up like a CD collection. |
| "If Scotland walks away from the UK, it walks away from the UK pound." | "If Scotland walks away from the UK, it walks away from the UK pound." |
| The Chancellor went on: "There's no legal reason why the rest of the UK would need to share its currency with Scotland, as the Treasury's publication today clearly shows. | The Chancellor went on: "There's no legal reason why the rest of the UK would need to share its currency with Scotland, as the Treasury's publication today clearly shows. |
| "So when the Nationalists say the pound is as much ours as the rest of the UK's, are they really saying that an independent Scotland could insist that taxpayers in a nation it had just voted to leave had to continue to back the currency of this new, foreign country? | "So when the Nationalists say the pound is as much ours as the rest of the UK's, are they really saying that an independent Scotland could insist that taxpayers in a nation it had just voted to leave had to continue to back the currency of this new, foreign country? |
| "Had to consider the circumstances of this foreign country when setting their interest rates? Stand behind the banks of this foreign country as a lender of last resort? Or stand behind its foreign government when it needed public spending support? | "Had to consider the circumstances of this foreign country when setting their interest rates? Stand behind the banks of this foreign country as a lender of last resort? Or stand behind its foreign government when it needed public spending support? |
| "That is patently absurd." | "That is patently absurd." |
| The Scottish government's currency union plan would also see the services of the Bank of England retained, if Scotland became independent after the 18 September referendum. | The Scottish government's currency union plan would also see the services of the Bank of England retained, if Scotland became independent after the 18 September referendum. |
| The Chancellor added: "The UK is growing faster than any other advanced economy in Europe, and within the Union, Scotland is growing faster than the rest." | The Chancellor added: "The UK is growing faster than any other advanced economy in Europe, and within the Union, Scotland is growing faster than the rest." |
| "Nothing could be more damaging to economic security here in Scotland than dividing our United Kingdom." | "Nothing could be more damaging to economic security here in Scotland than dividing our United Kingdom." |
| Scottish Deputy First Minister Ms Sturgeon told the BBC that voters in Scotland would not be fooled by "campaign rhetoric" that aimed to "frighten and intimidate" people. | |
| She insisted a currency union between an independent Scotland and the rest of the UK was in the interests of both parties, adding: "It would be a very odd chancellor of any UK government that insisted on a course of action that cost their own businesses hundreds of millions of pounds, that blew a massive hole in their balance of payments, and of course, because assets and liabilities go hand in hand, would potentially leave the rest of the UK shouldering the entirety of UK debt, which is not something I want to see." | |
| Ms Sturgeon described Mr Osborne's comments as a bluff, adding: "Once Scotland votes to become independent, then we will look at what is in the best interests of Scotland and the rest of the UK. | |
| "When I say 'we' I mean a Scottish government and a UK government. | |
| "There are some very strong, practical, hard-headed reasons why continuing to use the same currency is in the interests of people across the rest of the UK." | |
| Following Mr Osborne's speech, Mr Alexander said the Treasury had provided "crystal clear" analysis that a currency union would create unacceptable risks both for Scotland and the rest of the United Kingdom. | Following Mr Osborne's speech, Mr Alexander said the Treasury had provided "crystal clear" analysis that a currency union would create unacceptable risks both for Scotland and the rest of the United Kingdom. |
| He also called on the Scottish government to set out an alternative currency proposal. | He also called on the Scottish government to set out an alternative currency proposal. |
| Mr Alexander added: "As a Scot and as Liberal Democrat Chief Secretary to the UK Treasury, on the basis of this analysis, I couldn't recommend a currency union to the people of Scotland and my party couldn't agree to such a proposition for the rest of the UK. | Mr Alexander added: "As a Scot and as Liberal Democrat Chief Secretary to the UK Treasury, on the basis of this analysis, I couldn't recommend a currency union to the people of Scotland and my party couldn't agree to such a proposition for the rest of the UK. |
| "The SNP continue to pretend that an independent Scotland could continue to share the pound. It couldn't, without agreement." | "The SNP continue to pretend that an independent Scotland could continue to share the pound. It couldn't, without agreement." |
| The Lib Dem MP said: "This isn't bluff, or bullying, it's a statement of fact." | The Lib Dem MP said: "This isn't bluff, or bullying, it's a statement of fact." |
| Mr Balls, added: "(Scottish First Minister) Alex Salmond is saying to people that you can have independence and keep the pound and the Bank of England - that is not going to happen. | |
| "It would be bad for Scotland, it would place an unacceptable burden on the UK taxpayer, it would repeat the mistakes of the euro area, in fact, worse. | |
| "You'd be trying to negotiate the monetary union as Scotland is pulling away from the UK. | |
| "It won't happen, I wouldn't recommend it. Scotland will not keep the pound if Scotland chooses independence." | |
| It is understood former Chancellor Alistair Darling, who is leading the Better Together campaign to keep the Union, was instrumental in getting the three Westminster parties to agree a joint currency position. | It is understood former Chancellor Alistair Darling, who is leading the Better Together campaign to keep the Union, was instrumental in getting the three Westminster parties to agree a joint currency position. |