Liberal Democrats have revealed the fantasy economics underpinning the SNP’s dream of an independent Scotland.

The SNP’s White Paper for an independent Scotland states that Scotland will keep using the pound until a switch to the Euro.

A letter from the Governor of the Bank of England to Liberal Democrat Finance spokesperson Jeremy Purvis makes it clear that independence would end monetary union with the rest of the UK. In practical terms this would mean that although Scotland could keep the pound, interest rates would still be set by the Bank of England, but with no account taken of the Scottish economy.

Commenting, Mr Purvis said:

“This letter blows apart the fantasy economics that underpin the SNP’s dream of an independent Scotland.

“The SNP used to complain that the Bank of England didn’t take Scotland’s economy into account when setting inflation. They wanted a permanent Scottish board member. But now, they’re content for a foreign bank to set Scotland’s interest rates without taking any account of our economic circumstances. This would affect every business and every household mortgage.

“This would be economic madness. The SNP’s arguments for independence are continuing to unravel.

“And, the SNP hasn’t even had any contact with the Governor on this absolutely fundamental question. This beggars belief after they have spent millions on their so called ‘National Conversation’.”
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