TOT: currency in an independent country

[Tim Streater]

[Archibald Tarquin Blenkinsopp]

Trevors.

Chap I worked with. Saw his pension plummet after the event. He ended up coming back to work part time. His original plan was trips to just about everywhere.

ICL Engineer, then went into gas, which is where we met up.

AB

[Robin]

<snip>

The Scottish Parliament's powers extend to non-savings, non-dividend income. Most of that is earned income. But there's a great deal of other stuff: eg pensions, property income, and taxable state benefits. And a wonk's delight beyond.

[Jethro_uk]

Unless the rules change.

[Jethro_uk]

As far as I am aware, there has been no suggestion that the rest of the Uk would somehow seek to stop an independent Scotland using the pound (and that raises the question of how they would actually *stop* such a move). And anyone who interprets the reporting as such isn't paying attention.

What has been stated is that should Scotland choose sterling as it's currency, then it would have no say over Bank of *England* monetary policy. Which is arguably (if not definitively) one of the key elements of being an independent country.

And independent Scotland could chose to use the US Dollar. But would have equally no say in it's monetary policy ....

[Scott]

I don't disagree with what you say from the outside looking in, but the view of the conference is to create a separate currency asap.

I'm still wondering - per my original question - what power a Scottish Government might have in terrms of compulsory conversion.

[Scott]

True, but aspects of tax - not dividends or CGT which are the main ones that would affect savers. I regard property income as earned income but accept tax rules may not.

[Jethro_uk]

I don't think there's any need for it to be compulsory - hence the lack of answer to your point.

All that needs happen is the Scottish Government create the "Scot", and launch it with a defined exchange rate of (say) 1 Scot = £1 sterling. job done.

From that second, all Scottish government payments are made in Scots, and only "Scots" are accepted for payments.

It's totally up to anybody who happens to have £sterling hanging around as to whether they change that into Scots, or keep it as is. No compulsion needed.

Of course, as life goes on, and people are paid and houses sold, there will be a lot of "Scots" starting to circulate.

There is a point about wages being paid in Scots instead of Sterling. From memory employment contracts don't usually specify the currency of payment ?????

I doubt there would be a day when Sterling accounts are forced to be Scots accounts which is effectively revaluing rather than changing currencies ?

[Marland]

If someone was giving something away would they advertise it as Scot Free.

GH

[Scott]

Would you see any difficulty in holding funds in a Sterling account in a bank based in England? I know the Danish banks are restrictive towards customers not resident in Denmark. All hypothetically speaking, of course.

[Jethro_uk]

*shrug* I don't know. Presumably banks and financial institutions would have to make provision for current accounts in "Scots" and allow a mechanism for customers to move money from a Sterling to Scot account *if they wish*.

Of course, the creation of a new currency would be an investment opportunity around the world. If the Scottish government played their cards right, they could attract a lot of capital from diversifying investment funds - offsetting the start up costs. And for all the English sniping, I bet a lot of UK banks would get a foot in too.

[bert]

But you've just said the prediction was a lie.

[bert]

Of course they can "use" the pound. There was one comment I think rapidly corrected around the time of the referendum which implied they couldn't.

[bert]

Is currency in any way a devolved matter? Scottish parliament may not in fact have powers to introduce a new currency. If they did so and it was illegal they would be open to action.

[bert]

Well UK banks already operate in Scotland, some based there.

[bert]

Many places don't now. Spurs new stadium is cashless.

When I was importing from Holland I had a euro account with a UK bank. No problem transferring funds either way.

Income tax they do. Not sure otherwise.

[bert]

In article [e-mail], Scott [e-mail]> writes

Property income is taxable income.

[Scott]

Not at present but the Scottish National Party (SNP) is proposing that Scotland should become an independent country outside the United Kingdom:

[Jethro_uk]

Ironically quite a few slipped out of Scotland when the first indeyref was held. I had a slew of letters telling me that offices were being relocated from Edinburgh to Essex ....

[Jethro_uk]

I was assuming the question was posed in a post-independence framework, should it happen.

The willingness of the SNP (amongst others) to tackle the currency debate now is a sign (I hope) that they learned from the fiasco of 2014. But if I have to read or hear one more "...but it's our pound too ..." whinges again, then I predict - again - there will be no independence. Grow up FGS.