First Minister sets out plans for the economy in an independent Scotland

Nicola Sturgeon has claimed it would be more of gamble for Scotland to remain part of the UK than to become independent, as she unveiled her Government's post-independence plans for the economy.

The First Minister said building a "stronger, fairer and more sustainable" economy was more likely with independence than remaining in the UK, but refused to say when the country would move to a separate currency.

The 108-page paper was revealed with a press conference at Bute House on Monday.

The document laid out some plans around an independent Scotland's currency, borders and more detail on a proposed £20 billion capital fund to be set up in the first decade after independence.

Ms Sturgeon, who admitted that independence did not guarantee economic prosperity for the country, said: "Fundamentally, we argue in this paper that a stronger, fairer, more sustainable economy is more possible for Scotland with independence than it ever will be with continued Westminster control."

Plans to create a seperate Scottish pound

The document detailed the Government's proposals for the creation of a separate Scottish pound, but the First Minister repeatedly refused to give a timescale for moving to the new currency.

Until the currency is created, Scotland will continue to use sterling, but is likely to have no control over monetary policy.

In the paper, a number of economic tests must be met before such a move, including that a new Scottish central bank would establish the "credibility" of the currency, creating sufficient reserves and Scotland being "fiscally sustainable" - as well as the Scottish Parliament approving the shift.

"Why don't we put a particular time scale on that? Because we consider that would be not responsible," the First Minister said.

"One of the criteria for the exact time at which that move is made would be the overall economic conditions and, therefore, if you tie yourself into a specific timescale, you could end up trying to do it at a time that would not be optimal."

The First Minister, reiterating what was said in the paper, told journalists the move would come "as soon as practicable".

When asked if the time scale could be five or 10 years, the First Minister said she hoped it would take less time than that.

Independent Scotland would look to rejoin the European Union

Membership of the European Union - one of the Scottish Government's key arguments for independence - would not be possible until Scotland has control of its monetary policy and currency, but the First Minister said negotiations for access to the bloc could go forward during the transition phase to a new currency.

In order to create the Scottish pound, the Scottish Government would have to set up a central bank, the process for which the paper said would start immediately after a vote for independence.

By the time Scotland is officially independent, the document said, the central bank would be set up and become the lender of last resort and a banker for the Scottish Government, with the independent body eventually tasked with setting monetary policy when the currency goes live.

When asked what constitutes fiscal sustainability - one of the criteria for the move to a Scottish pound - the First Minister said: "Fiscal sustainability is not about an overnight balancing of the budget for any country.

"It is assessed by the institutions that we've spoken about here: a central bank, the beefed up Scottish Fiscal Commission; assessed by them that we are on a medium path to fiscal sustainability both in terms of deficit and the path of debt and these would be judgements that would be informed for Parliament who would take this decision."

Opponents brand plans "mayhem" and "a pig in a poke"

Responding to the paper, Scottish Labour finance spokesperson Daniel Johnson said: “While economic chaos reigns, the SNP is focused on plunging Scotland into even greater turmoil.

“The truth is this – the SNP government has no answers to the key economic questions surrounding independence.

“They have no plan for a central bank worthy of the name and no plan to balance the books in the event of independence.

“Scotland using the currency of another state without a shared political system is a recipe for mayhem.”

Scottish Tory leader Douglas Ross said the paper was trying to "sell a pig in a poke", adding: "It's completely the wrong priority at the worst possible time for Scotland.

"Nicola Sturgeon should be using Government resources to help struggling families instead of to push for another divisive and unwanted referendum."

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