Business chiefs welcome currency ‘clarification’

GEORGE Osborne’s announcement that the UK will not accept a currency union in the event of Scottish independence has been welcomed by the head of the Scottish Chambers of Commerce, who has urged the Scottish Government to come up with new currency proposals.

George Osborne clarified the UK Government's position on a currency union earlier. Picture: TSPL

Liz Cameron, chief executive of the Scottish Chambers of Commerce, welcomed Chancellor George Osborne’s “clarification” today that a “sterling zone” between Scotland and the rest of the UK is a non-starter.

The currency issue is now unlikely to be resolved until after independence, according to Ms Cameron, who called for “alternative models” to a currency union to be examined, along with their impact on business.

Ms Cameron said: “Clarification of policy stances from all parties to the independence debate is welcome, though it is important to understand that definitive answers on many issues of application in an independent Scotland would not be available until the conclusion of post-referendum negotiations.

“Currency remains likely to be one of these issues, though the Chancellor’s clarification of the UK Government’s stance is extremely useful to businesses as they approach the referendum.

“His statement does of course raise the importance of the consideration of alternative models for currency in an independent Scotland and scrutiny of how these may impact businesses in the future.”

Other options for Scotland include simply using the pound, although this would mean losing control of key levers of economic control like setting interest rates. The country could also adopt its own currency or adopt the euro.