Jo Swinson MP for East Dunbartonshire has described the Scottish National Party’s plans for a currency union between an independent Scotland and the rest of the UK as increasingly complicated and unclear.
Her comments come in the wake of a report released on Tuesday 23 April by HM Treasury which challenges the SNP case for a currency pact. In the report, the Treasury outlines how the proposed currency pact would constrain an independent Scotland’s tax and spending policies.
Highlighting the Euro zone, the report also explains that currency unions do not necessarily add any additional protections against funding problems.
Commenting Jo said:
“Even though the SNP would have local residents believe the currency pact is an easy option, in fact their plans look increasingly complicated and unclear.
“What they seem to want is a Eurozone-style arrangement for the Pound which would require a mass of arrangements and common agreements which would constrain Scotland’s fiscal freedom.
“An independent Scotland would have no influence over the Bank of England but would still effectively be under its control, hardly the point of independence.
“There is also no guarantee that Scotland could even join the Pound, as any pact would require negotiation between an independent Scotland and the remainder of the UK.
“Publicly Swinney has not ruled out adopting a new Scottish currency in the case of independence but it’s been obvious that he and Salmond have no plan for an independent Scotland to use any other currency but the Pound, so where does this leave them? It’s not a currency union if both sides don’t sign up.
“The more the case for independence is scrutinised the faster it unravels.”
The paper can be found here: https://www.gov.uk/government/publications/scotland-analysis-currency-and-monetary-policy