When I got home yesterday evening two door-drops greeted me, one from the UK Government (Five Ways we Benefit by Staying in the United Kingdom) and one from the Scottish Government (Scotland’s Future: What Independence Means for You).
The former states as follows:
The pound is one of the strongest and most stable currencies in the world. Staying in the UK is the only way Scotland can keep the strength of the Bank of England and the pound as we have now. Setting up a new currency for an independent Scotland would be costly and risky.
Three claims. Each of them true. None of them overstated. None of them exaggerations. None of them scaremongering. No threat to “take away the pound”. No nonsense about an indy Scotland “not being able to use” the pound. Just three accurate, carefully worded, true statements.
By contrast, the latter states as follows:
We’ll keep the pound. An independent Scotland will keep the pound. After all, it’s as much Scotland’s currency as it is the rest of the UK’s.
Three claims. Two of them deliberately misleading; one of them demonstrably false.
Here, in a nutshell, is the problem we now face in Scotland. This ought to be, but in fact is not, a clean argument between two honest visions of Scotland’s future. What we in fact have is an argument in which one side tries to be reasonable, fair and clear and in which the other side has a marked disregard for the truth. What on Twitter has been called #yesperation has evidently started to cloud the judgment of the Scottish Government.
It may very well be that an independent Scotland would keep the pound. As I have written before, there is little the rUK could do to stop this. The pound is a freely traded currency on the money markets. Any state could adopt it as their unit of exchange should they so wish. But no state does so. Why? Because to use the currency of a foreign power would mean surrendering the entirety of your monetary policy to that power. This would make your country more dependent on that foreign power, not independent of it.
In order to use the currency of a foreign power without surrendering sovereignty over your monetary policy you have to enter into a formal currency union with that power. And this is what the SNP say they’d like an independent Scotland to do: “our proposal is for a formal currency union with the rest of the UK”. The SNP insist that “this makes sense” for the UK economy, despite the fact that the Chancellor George Osborne, the Shadow Chancellor Ed Balls, the Chief Secretary to the Treasury Danny Alexander and the Permanent Secretary to the Treasury Sir Nicholas Macpherson have each given lengthy and compelling reasons explaining why entering into such a currency union with an independent Scotland would be contrary both to the economic and to the political interests of the rUK. See here for all the detail. This is why they have formally ruled out a currency union with an independent Scotland. And this is why the UK Government door-drop carefully states that “staying in the UK is the only way Scotland can keep … the pound as we have now”. What the Scottish Government door-drop should have stated is “we’ll keep using the pound, despite the fact that once we are independent it will be the currency of a foreign power”.
The pound does not belong to Scotland. The statement “it’s as much Scotland’s currency as it is the rest of the UK’s” is false. The pound is the UK currency. It belongs neither to Scotland nor to England but to the UK. If Scotland votes Yes next month, Scotland will have voted to leave the UK. Leave the UK and you leave the UK’s public institutions, including the UK pound. This has been clear for months and months and months, yet still the Scottish Government are in denial about it. But you no longer have to take my or any other No campaigner’s word for it. Last month Lawyers for Yes wrote on their website that it is “true to say that the public institutions of the UK would become the public institutions of rUK” and that “the Bank of England is a UK body and the pound is the UK’s currency, and as ‘institutions’ of the UK they would stay with the UK”.
There you have it. Lawyers for Yes admitting that what the UK Government have said is correct and that what the Scottish Government continue to say is wrong in law. In the law we have a word for what the SNP are doing. That word is misrepresentation.