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Chancellor rules out currency union with Scotland

If Scotland "walks away" from the UK it would also be walking away from the pound, the Chancellor has said. George Osborne issued the stark warning to voters north of the border ahead of September's independence referendum.

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PM warning on currency union with Scotland

The Prime Minister warned that the Chancellor would reject the possibility of Scotland maintaining the pound post-independence, the Guardian reports.

David Cameron warned the Chancellor would not agree to Scotland continuing to use the pound, post-independence. Credit: PA Wire

Speaking at a press conference yesterday he said:

"The chancellor will be discussing this later in the week. I think it would be very difficult to justify a currency union post-independence. But I think it is very important that we set out these arguments in a very clear and rational way."

George Osborne, Danny Alexander and Ed Balls are all reportedly set to rule out Scotland keeping the pound if they become independent after the September vote.

Their comments come after the Bank of England Governor Mark Carney said a currency union for Scotland would involve the loss of some sovereignty.

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