Independence and oil: A slippery business

Our Political Editor looks to the North East of Scotland where the Prime Minster and First Minister have been discussing the future of oil.

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Treasury: Scottish Government needs a Plan B

Economics Editor Richard Edgar is in Edinburgh and listened to the Bank of England governor's speech on how a newly-independent Scotland could retain sterling:

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Treasury's blunt response to Carney's speech: "A currency union is highly unlikely to be agreed. The Scottish Government needs a Plan B.”

Read Richard's analysis of the Bank of England governor's speech

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Carney's speech 'devastating' for Salmond's plans

Former chancellor Alistair Darling, who also leads the Better Together campaign to keep Scotland in the UK, said Bank of England governor Mark Carney's speech on currency union spells out stark problems.

Former chancellor Alistair Darling. Credit: David Cheskin/PA Wire

Mr Darling said: "This is a detailed speech but make no mistake - the governor's judgment on currency unions is devastating for Alex Salmond's currency plans. Why? Because the whole point of independence is to break the fiscal and political union that makes monetary union possible.

"The governor has spelled out in stark terms the problems of a currency union. Above all, it needs people living in the rest of the UK to agree to something they have never been asked about.

"As the governor makes clear, in a currency union both sides have to agree to each other's taxes, spending and borrowing. This is what is happening in the eurozone today.

"It is highly unlikely that the people living in the rest of the UK would agree to this. And remember, in a currency union like this, Scotland has 10% of GDP and the rest of the UK would have 90%. It is clear who would call the shots."

Read: Carney's speech may cause headaches for Salmond

National

Carney: A currency union means a loss of independence

Economics Editor Richard Edgar is in Edinburgh for the Bank of England Governor's speech on how a newly-independent Scotland could still retain sterling:

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Key message from Carney: "a durable, successful currency union requires some ceding of national sovereignty."

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Tough decisions on giving up sovereignty to be made both by Scots ... and rest of UK.

Read Richard's analysis of the Bank of England governor's speech

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Scotland 'would be constrained by currency union'

Mark Carney with Scotland's First Minister Alex Salmond this morning Credit: PA Wire

The Bank of England Governor has warned that a newly-independent Scotland would be forced to hand over some national sovereignty if it wanted to keep the pound.

But Mark Carney appeared to step back from getting involved in the political row oer independence, saying: "Decisions that cede sovereignty and limit autonomy are rightly choices for elected governments and involve considerations beyond mere economics.

"For those considerations, others are better placed to comment."

National

No 10: Not surprising Carney has set out views on vote

Bank of England governor Mark Carney's decision to speak publicly about the possible consequences of Scottish independence has been welcomed by Downing Street.

Bank of England governor Mark Carney arriving in Edinburgh today. Credit: David Cheskin/PA Wire

Prime Minister David Cameron's official spokesman said: "It's hardly very surprising that the independent governor of the Bank of England might wish to address and consider some of the issues that are involved.

"The issue around currency is an important part of the debate that is currently going on in Scotland. It hardly seems a great surprise at all, on the technical issues, that the governor of the Bank of England might want to set out his views.

"I'm sure the people of Scotland will want to be as well-informed as possible."

Watch: Salmond hails 'excellent talks' with Carney

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