SNP ‘MUST BE PREPARING TO LOSE POUND’

IT would be ‘extraordinary’ if Alex Salmond’s top civil servants are not drawing up plans for a separate Scots currency, claims the Scottish Government’s former chief economist.

Professor Andrew Goudie said a deal to share the pound between a separate Scotland and what remains of the UK could be rejected by either side. Even if Treasury chiefs did agree to Mr Salmond’s ‘currency union’, they would impose strict conditions – which might be rejected by the SNP.

Chancellor George Osborne and Labour’s Ed Balls have both said they would not agree to such a deal. This would mean an ‘alternative currency arrangement’ for Scotland, said Professor Goudie, adding: ‘While preparations now might not be conducted openly, it would be extraordinary if the Scottish Government were not already preparing for this potential outcome.’

Treasury Secretary Danny Alexander said: ‘The Scottish Government knows a currency union is not going to happen. That’s why they’re making plans behind closed doors for a separate currency.’

A Scottish Government spokesman said: ‘These suggestions are wrong. A formal currency union is in the overwhelming economic interests of the rest of the UK.’