Westminster’s decision to refuse a currency union with an independent Scotland is final, chief secretary to the Treasury, Danny Alexander said today.
Speaking to delegates on the final day of the National Association of Pension Fund’s annual investment conference in Edinburgh, Alexander said the government would not change its mind on a union which it believes would be detrimental for both Scotland and the rest of the UK.
“I’ve seen some people suggest we are not serious about refusing a currency union. Let’s call this the John McEnroe defence,” Alexander said.
“Except in this instance it’s not just one person they’re shouting at, but three. And our decision – taken in the best interests of Scotland and the rest of the UK – is final. No ifs, no buts.”
He also stated that England and Wales should not be asked to back Scotland’s economy and risk having to bail out the country should it struggle.
“Alex Salmond cannot expect Scotland to walk away from the union while expecting taxpayers in England and Wales to stand behind its economy,” Alexander said. “It would be like embarking on a damaging divorce and insisting on still sharing a credit card.”
He also warned that Scottish pensions would be more exposed and face higher costs after independence because a new, smaller Pension Protection Fund would have to be created.
“A vote for Independence opens the flood gates to a sea of uncertainty on currency, rates and regulation all of which puts the value of those life savings at risk,” Alexander said.
“Would you want to be the first Scot to claim their pension after Independence with all this risk and uncertainty? How those referendum votes end up in the ballot box will have a profound impact on how much money we find in our pay, our pocket and our pensions.”
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