An independent Scotland could lose the pound - that was the warning from the Chancellor George Osborne as he launched a new treasury report today.
The Scottish Government says it wants to create a currency union with the rest of the UK if Scots vote 'yes' in the referendum next year.
However, Mr Osbourne cast doubt on the idea that a deal could be struck and warned Scotland could be heading into 'unchartered waters.'
Kathryn Samson reports:
Borders MP Michael Moore has said that the currency paper published by the UK Government today "clearly shows that we are better together".
Scottish First Minister Alex Salmond, speaking to BBC News 24, accused the Chancellor of "political sabre-rattling".
He said that was for the "very simple reason that huge Scottish resources such as oil and gas would continue to protect the sterling balance of payments"
Speaking in Glasgow Chancellor George Osborne said, "the conclusion is clear, the pound we share works well. The saying goes - if it ain't broke don't fix it, but I say, if it ain't broke don't break it."
He added, "I want the best for Scotland and for all our United Kingdom. We're better together."
Speaking in Glasgow the Chancellor has said:
Baroness Thatcher's legacy in Scotland was the topic for debate at Holyrood this afternoon.
The discussion had been postponed to avoid a clash with yesterday's funeral.
Watch the full report from Jenny Longden below.
A debate is being held at the Scottish Parliament today about the legacy of Baroness Thatcher.
The debate was originally scheduled for yesterday but Scottish Conservatives complained that it was insensitive to hold it on the day of the former Prime Minister's funeral.
The Finance secretary has announced a draft budget for 2013 / 2014. John Swinney has said the actions the Scottish Government will take this autumn will provide further investment in construction, skills and the green economy.
John Swinney pledged £180m over two years for construction, skills and employment and a green economic stimulus.
He confirmed a more rapid delivery of the Schools for the Future programme worth £80m and an initiative to create up to 10,000 job opportunities for young Scots.
The Budget keeps the Government's commitments to a council tax freeze, police numbers, no tuition fees, free prescriptions, concessionary travel, and NHS budget protection.
He confirmed a 1% increase for most Government and NHS employees, more support for the low paid and no compulsory redundancies.
Scotland's bracing itself for cuts as Finance Minister John Swinney prepares to set out his budget to MSPs this afternoon. He says he'll prioritise jobs and growth. He claims he's facing the toughest financial settlement from Westminster since devolution. Kathryn Samson sent this report.
Borders Chamber of Commerce director Bruce Simpson says the budget must do more to help rural areas. He says there needs to be an emphasis on infrastructure, particularly railway links, roads and communication, through providing better broadband.