Scottish Government’s Bank of England ambition ‘fanciful’

The Scottish Government’s ambition to have some influence over the Bank of England after independence has been dismissed by a House of Lords committee as “entirely fanciful”.

Peers came to the conclusion in a report on the economic implications for the UK, assuming Scotland votes for independence in September next year.

The report takes a broad look at issues including currency, banking, financial regulation, assets and liabilities.

While raising specific concerns on the future impact, members of the select committee on economic affairs also criticised ministers on both sides of the border for failing to be open with the electorate.

Focusing on more technical economics, the report said currency is “perhaps the most important economic decision” and urged both governments to put forward details in good time for the public to make informed decisions.

The Lords summed up: “Arrangements should be clear before the referendum. But the proposal for the Scottish Government to exert some influence over the Bank of England, let alone the rest of the UK exchequer, is devoid of precedent and entirely fanciful.”