by Gordon Banks
Yesterday’s intervention by the chancellor is a defining moment in what has become the key issue of the debate surrounding Scottish independence.
George Osborne dealt a serious blow to the SNP by effectively ruling out any possibility of a currency union between an independent Scotland and the rest of the UK.
His comments, which were echoed by both the shadow chancellor and the chief secretary of the Treasury, have confirmed that a vote for independence would be a vote for Scotland losing the pound.
The chancellor’s comments have also had another important consequence, one which has perhaps been overlooked in the analysis of his speech, and that is to bring attention to the debate about the impact of currency on Scottish business.
We already know that currency is one of the most important issues Scottish businesses consider when approaching the independence debate. This is a fact which has been repeated on a number of occasions, most recently by Liz Cameron of the influential Scottish Chambers of Commerce.
The reasons for this are clear. The UK stands as Scotland’s dominant export market by a wide margin and any change to the current currency arrangements would have a significant impact on trade, productivity and growth.
