Sterling effort: Nicola Sturgeon could drop the pound

Growth commission set up by First Minister looking at currency issue

Nicola Sturgeon has dropped the strongest hint yet that she may ditch the SNP’s policy of an independent Scotland keeping the pound.

During a TV interview, the First Minister admitted she did not know yet which currency the country would use if it left the UK.

The SNP leader has set up a so-called growth commission – headed by former MSP and ex-RBS economist Andrew Wilson – to examine a series of economic issues, which will report back within the “next few months”.

Sources close to Ms Sturgeon say her decision will be heavily informed by the group’s conclusions and is likely to adopt its recommended option.

The SNP’s policy before the 2014 vote was to keep the pound within a currency union, a plan which was ruled out by the then-Chancellor, George Osborne.

Asked by Sophy Ridge on Sky News if she knew which currency an independent Scotland would use, Ms Sturgeon said: “Well, that commission hasn’t concluded its work yet, I’m being perfectly frank.

“Look, a referendum, at the earliest, is going to be 18 months from now. I absolutely accept well in advance of that, not just on currency but on the economic plan, on some of the questions you are asking me on Europe, we will set out a very clear proposition.

“But I think it’s right, given the changed circumstances of Brexit, that we do very serious work before we come to putting that proposition forward. So that work hasn’t concluded yet.”

There was much speculation about currency during the SNP conference in Aberdeen this weekend.

Stewart Hosie, the Dundee East MP and the party’s Treasury spokesman, said the option of using sterling is “not as strong an option” as it was in 2014.

Tommy Sheppard, the Edinburgh East MP, has said he favours a separate, Scottish currency, while Edinburgh South West MP Johanna Cherry failed to answer a question on the issue during a recent appearance on Question Time.

John Swinney, the Deputy First Minister, also dodged questions on the issue during a radio interview at the conference on Friday morning.

Labour’s economy spokeswoman, Jackie Baillie MSP, said: “The people of Scotland deserve some answers from Nicola Sturgeon. She is the person threatening a second independence referendum, yet she refuses to give voters the clarity they need.”

Ms Sturgeon was also pressed on whether Scotland can afford to become an independent country with a £15bn deficit. She said: “Perhaps some people would look at that and say, could Scotland afford not to be, because that deficit... is one that has been created on, to use shorthand, ‘Westminster’s Watch’.”

But I think it’s right, given the changed circumstances of Brexit, that we do very serious work before we come to putting that proposition forward. So that work hasn’t concluded yet. NICOLA STURGEON