UK- Scotland currency union ‘not viable’- MP

Local MP Sir Robert Smith has responded to the Treasury’s analysis of the possibility of an independent Scotland keeping the pound.

The West Aberdeenshire and Kincardine member has said that the evidence from the department showed that the proposed currency union in the case of independence was “not viable”.

In a speech in Edinburgh Chancellor George Osbourne warned that there was “no legal reason” that Scotland would be entitled to keep Sterling following a yes vote adding: “If Scotland walks away from the UK, it walks away from the UK pound.”

Shadow chancellor Ed Balls is also expected to endorse Mr Osborne’s comments.

The Yes campaign’s White Paper says retaining Sterling would be in “Scotland’s interests” and proposes a “sterling zone” between Scotland and the rest of the UK following independence.

Sir Robert said: “Scottish people need to know exactly what independence will mean when they go to vote on September 18. The analysis that has been published today makes it clear that a currency union is not viable; this is the conclusion that economists have come to and voters need to consider this expert advice before making up their minds.

“The benefits of sharing a currency with the rest of the UK are clear; Scotland is able to benefit from a diversified economy where resources can moved around to respond to global financial pressures... The message is simple, the best way to keep the pound is to vote No in the referendum.”

Nicola Sturgeon, Deputy First Minister said it was the “Westminster establishment ganging up to try and bully Scotland”. She added: “This is a panic move.”