Referendum Answers

Short Answers to Popular Questions about Scottish Independence

The Pound

Q. What money will we use? Labour & the Tories say they won't share the pound. 

A. We'll use the pound. Nobody can stop us.

Labour and Tories (together as usual) tell us that we won't be able to use the pound, but they know that it will be in everybody’s interest for Scotland to continue to use the pound after independence. Here's why.

First, trade between Scotland and the rest of the UK is a massive £47 billion a year. £47bn! The Chancellor isn't going to tell the UK's businesses that he’s going to cut their profits on sales to their second biggest market just because he doesn’t want us to use the pound.

Secondly, the strength of Scotland’s economy underpins the pound's value on the international money markets. That could result in the interest rates the UK government pays for its massive debts going up. And that's not a risk that George Osborne is about to take with the UK's finances.

But even if the UK refused to enter a formal currency agreement with Scotland, then we'd just use the pound anyway. The pound is what's called a 'fully-tradeable international currency' and as such any country can use it if it likes. The Irish used it for years after they became independent in 1921.

So although the UK goverment likes to spread fear, uncertainty and doubt about the pound, you can be sure that after independence we'll still be using the pound to pay wages and pensions and to buy things. Just like now in fact.