Scotland would keep pound in SNP independence plan

AN independent Scotland would use the pound without the UK’S permission for at least a decade before moving to a new currency or the euro, according to an SNP blueprint.

The Sustainable Growth Commission report has said sterling would be used “for a possibly extended transition period” while the country’s huge deficit was brought down using what the Tories called “austerity on stilts”.

Andrew Wilson, the commission’s chairman and a former SNP MSP, insisted Scottish banks could continue issuing Scottish pound notes without permission from the Bank of England.

But in an unprecedented situation for an economy of that size, Scotland would have no say over interest rates or exchange rate policy, which would continue to be set by the UK.

The report set out six tests for moving to a new currency but did not cost the level of foreign currency reserves required. Prof Ronald Macdonald, Scotland’s most eminent macroeconomist, has estimated it would need between £30billion and £300billion.

The report also insisted that a separate Scotland would try to maintain frictionless borders with both the EU and the remainder of the UK despite Brussels ruling this out for Northern Ireland.

Nicola Sturgeon, the First Minister, said she planned to use the report to “restart” the independence debate but Ruth Davidson, the Scottish Tory leader, said “none of it adds up”.