New Scottish currency ‘could see pensions slashed by 30%’

Plans by the SNP to introduce a new Scottish currency could see state pensions slump by 30 per cent, according to an expert in economics.

First Minister Nicola Sturgeon receives the Sustainable Growth Commission report from commission chair Andrew Wilson. Picture: Gordon Terris/The Herald/PA Wire

Speaking to the Scottish Mail on Sunday, professor Ronald MacDonald from Glasgow University, said an independent Scotland would not have the reserves to attach its new currency to the British poind and would suffer a ‘floating exchange rate.’

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The economics expert warned: “Anything denominated in the new Scots pound, say, would be worth less in value than before and quite possibly a lot less. So pensions would be a good example of that. Furthermore, since we are a net importer from the rest of the UK and the rest of the world, prices of these goods would rise and inflation would be greater, so there would be a double whammy of financial assets worth less and spending power of the pensions would be diminished.”

Scottish Conservative finance spokesman Murdo Fraser said: “ The SNP’s economic blueprint for independence already proposes austerity on stilts and massive tax increases for hard-working Scots. It now appears the new SNP currency would force up the prices of your shopping and decimate pensions.”