Scottish independence: Scotland able to keep pound

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.

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.