Scottish independence: Scotland able to keep pound

Published on 25/02/2013 09:21

AN INDEPENDENT Scotland will be able to keep the pound, the UK government will argue next month – but only if Scottish ministers accept budget constraints set by London, it was reported last night.

In a paper next month, the coalition will back down from its resistance to the idea of sharing the pound, as advocated by First Minister Alex Salmond. But in a position likely to trigger a row with the Scottish Government, Chancellor George Osborne will say a currency union would require ministers in Holyrood to accept a deficit cap, policed from London.