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  1. National

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."


  1. 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."

  1. National

Salmond hails 'excellent meeting' with Carney

First Minister Alex Salmond said he had an "excellent meeting" with Bank of England governor Mark Carney over Scottish independence.

Mr Salmond, who wants a currency union with the UK if Scotland backs independence in a referendum in September, also reiterated that "the Bank of England is independent and doesn't intervene in politics."

  1. National

BoE and Scotland talks to continue until vote

First Minister Alex Salmond has confirmed that talks with the Bank of England governor Mark Carney over a currency union if Scotland wins independence will continue in the run-up to the referendum.

Bank of England governor Mark Carney (left) meeting Scottish First Minister Alex Salmond. Credit: David Cheskin/PA Wire

Mr Salmond held talks with Mr Carney in a private meeting today, but the First Minister said afterwards: "I was delighted to welcome the new Bank of England governor to Edinburgh on his first official visit to Scotland since his appointment.

"We greatly value our strong working relationship with the Bank of England and its commitment to operational independence and impartiality in political debate.

"The discussion was private but I welcome that the governor has confirmed his willingness to continue technical discussions, inaugurated by his predecessor Lord King, between the Scottish Government and the Bank of England in advance of the referendum."


  1. National

Salmond: Treasury could change approach in 'Yes' vote

Scotland's First Minster has said that Mr Carney's predecessor at the Bank of England, Sir Mervyn KIng, had suggested the Treasury could change its approach in the event of a Yes vote.

Alex Salmond told how he had met Sir Mervyn "a couple of years back", and added: "The first thing he said to me was 'your problem is what they say now', meaning the Treasury, 'and what they say the day after a Yes vote in the referendum are two entirely different things'."

Mr Carney, who took over as Governor of the Bank of England in July, has already warned of "challenges" of adopting a shared currency without having "certain institutional structures" put in place.

  1. National

BoE Governor talks on Scotland retaining the pound

Scotland's First Minister will have face-to-face talks with the latest Bank of England governor for the first time today. Alex Salmond and Mark Carney are due to meet in Edinburgh.

Governor of the Bank of England Mark Carney. Credit: Dylan Martinez/PA Wire/Press Association Images

Mr Carney is also giving a speech in the capital, in which the issue of a currency union between an independent Scotland and the rest of the UK will be addressed.

Mr Salmond's Scottish Government has put forward plans for Scotland to retain the pound if the country votes for independence in September's referendum, establishing a "sterling zone" with the UK.

Plastic banknotes: What you need to know

  • The notes are wipe-clean and can survive a hot wash
  • The notes are virtually impossible to rip
  • Polymer notes are able to fold
  • Governor Mark Carney led Bank of Canada when the notes were introduced there
  • Polymer notes are used in more than 20 countries
  • The first county to switch to polymer was Australia in 1996
  • A move to polymer notes would end 320 years of paper note tradition in Britain
  • Five-pund notes currently last for around two years
  • Polymer fivers would last for about six year
  • Old polymer notes can be recycled
  • The Bank expects to save more than £100 million over a decade from the longer-lasting notes
  • Polymer notes would be 5 millimetres smaller in both length and width than current notes
  • The new notes are said to be more difficult to forge

Plastic bank notes mean cash boost for Wigton

The new plastic Bank of England bank notes are almost certainly going to be manufactured right here in our region.

It'll mean a new 20 million pounds factory will be built in West Cumbria, creating around 80 new jobs.

Innovia Security in Wigton is close to signing the contract to supply the material for the new-style five and ten pound notes, which will be brought into circulation in two years' time. Matthew Taylor reports.

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