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:
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