The UK Government yesterday published its second Scotland Analysis paper on the consequences of separation.
The 113 page document on currency and monetary policy questions the SNP’s assertions that under separation a currency union could be set up with the rest of the United Kingdom.
Scottish Conservative Finance spokesman Gavin Brown MSP said: “What is clear, despite the mutterings of the SNP, is that there has been little or no meaningful contact with the Treasury or the Bank of England about their preferred currency option under separation. With just under a year and a half to the referendum vote, it is quite staggering that the SNP has not bothered to ask how this could work in practice. We also need to know if the Scottish Government’s independent Fiscal Commission has had any meaningful discussions with either the Treasury or Bank of England before publishing their economic paper.
Today’s paper states the economic case for the rest of the UK entering into a currency union with a separate Scotland is not clear cut. While it may be the Scottish Government’s preferred option, it’s only realistic if both sides want it. It does not matter how often the SNP say they want such an arrangement, if the other side does not want to deal then it will not happen. The Treasury paper also makes clear that if the rest of the UK does agree to a currency union, there would need to be mechanisms for controlling and reviewing the tax and spending policies of a so-called independent Scotland.
Alex Salmond has clearly not thought through the implications of this, yet is prepared to gamble away Scotland’s financial stability in his vain pursuit of breaking up the UK.”
