Scottish Independence and the Potential Bluff on the Pound

Posted by Allison on 18 August 2014, 17:30

If you live in Scotland you can hardly have missed the news that you will get a chance to vote for or against independence from the rest of the UK in a few weeks’ from now. The recent TV debate between the first minister and the leader of the Better Together campaign showed that the currency issue is still the most important – and the most difficult – area of concern.

Alex Salmond has already said – repeatedly – that in the event of the Scottish people voting for independence, the country would continue to use the British pound. However the leaders of every major party in government have vetoed this idea. Instead of looking for an alternative position Alex Salmond has remained 100% in favour of the pound being used. According to his statements this is what will happen.

However this relies on him being right about the three main leaders of the parties in Westminster bluffing about the idea of a currency union. It’s a big gamble to take, especially as it would leave Scotland potentially floundering with no currency in place if independence was chosen and there was no bluff. What would happen then?

Many have said it is shocking, puzzling and unbelievable that there could be no plan B in this situation. In effect Scotland could be left without a currency at all if it did become independent and there was no chance of using the pound as it does at the moment. Bringing in a new currency or adopting another one as an alternative is not a fast or simple choice. This means it could be a sticky situation. After all it is at the moment.

We’ve reported on this before but it was a while ago and we hoped that as the date for the referendum came closer we would see a change in positions. We hoped we could report on a plan B, but yet again it appears there is not – and will not – be one. This is an enormous risk to take and it could be a risk that tips more people in favour of a ‘no’ vote in the end.