We particularly note that, according to research commissioned by Believe in Scotland (BIS), this is strengthened if the independence proposal contains a commitment to a “wellbeing” Scotland.
We are very willing to work with all like-minded independence groups and gladly accept the offer from Gordon MacIntyre-Kemp and BIS to join them in developing the Scottish currency proposal.
The SCG is non-aligned politically but clearly we are partisan. We are singularly focused on our core belief – that to be independent in any meaningful sense, Scotland must prepare and be ready and able to issue its own currency on day one of independence. Let’s call it the Scottish pound.
READ MORE: Why is the Scottish Government moving away from a wellbeing economy?
The idea that we could or should share GB sterling, even for a week after independence, would be disadvantageous to the new nation, particularly if our prospectus includes a commitment to creating a “wellbeing” society.
It is also important to be clear on what “wellbeing” means. It is a word which is much over-used today, particularly by large corporate employers and their human resources departments. As such, it is very often seen to be corporate management speak. We know this is not what BIS presented in their polling. The meaning of “wellbeing” needs to be spelt out in simple language to voters. The SCG sees it as a commitment to create a society where citizens – not corporate interests or global billionaires – are the focus of government..
Wellbeing in this context means a commitment by the Scottish Government, enshrined in a Scottish Constitution, which defines a right to: lA job; lA house; lAdequate food; lA decent state education; lA fully-funded National Health Service; lA liveable state pension.
We in the SCG believe these are the six key priorities in defining what it means when we describe a “wellbeing” society.
Others will say it should include a commitment to a greener future, eradication of food banks, improved social care or nationalisation of strategic industries.
We would not disagree but, for the average voter, the above points are what matter – a distinct contrast to the continuing decline in living standards we are experiencing in Brexit Britain, assuming you are not one of the top 1%.
Issuing our own currency is vital to delivering on this vision and commitment. Creating our own currency is not difficult but requires us to establish a central bank, treasury and, very importantly, our own inter-bank settlement system – all before independence day.
The latter is essential to ensure that, on day one of independence, your bank card will operate in ATMs and at tills in the supermarket. The work to build these departments of state should start now.
Fiscal sovereignty alone, meaning the right to raise and collect taxes, which we have to only a very limited extent under devolution, can never provide the flexibility nor the ability to deliver a wellbeing economy.
Monetary sovereignty is the key that unlocks that door. Independence with our own currency gives us all the tools enjoyed by any normal independent state.
It would allow the government to commit to raise the Scottish state pension to the European average – which would approximately double the current payment. Fully funding the NHS and education could be guaranteed.
Our infrastructure, including housing, would require rebuilding. This would enable a job guarantee and food banks would be eradicated.
Borrowing by the new Scottish state should always be in Scottish pounds from our own central bank, avoiding foreign currency debt and interest payments which, for many countries, has proven to be a millstone around their necks – requiring a change in economic policies to earn income to repay interest and capital to a foreign state (as England and the Bank of England would be after independence).
With the natural resources and wealth of Scotland there should be no fear for the strength of the Scottish pound.
The SCG welcomes the opportunity, throughout 2025, to work with like-minded organisations to bring a focus on the importance of currency as the lever to deliver that wellbeing economy, as highlighted as critical by BIS’s research.
Together, we need to spell out how independence and being able to issue our own currency would increase “wellbeing” for all those living in Scotland.
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We look forward to working together.
Ian Stewart FCIBS is chair of the Scottish Currency Group (Banking and Finance)