Independence: what you need to know

Currency and managing the economy

The Scottish Government’s policies for an independent Scotland at a glance

• an independent Scotland would introduce a new currency, the Scottish pound, as soon as practicable - until then, Scotland would continue to use the pound sterling as its currency
• new institutions would be set up to manage the Scottish economy, including an independent Scottish Central Bank
• to give an independent Scotland the strongest start, a new 10-year fund – the Building a New Scotland Fund - would invest up to £20 billion in Scottish infrastructure
• reforms to employment law, with proposals for better pay and conditions, better regulation and better partnership working between employers, workers and trade unions

An independent Scotland’s economy

Scotland is well-placed to become an independent country, with its own devolved parliament, government and institutions already in place.

An independent Scotland would have full control over tax and spending (fiscal policy) so that decisions about the economy would be based on what’s best for Scotland.

With full economic powers, future Scottish Governments could develop policies that strengthen the economy and make Scotland better placed to respond to global challenges.

Scotland's fiscal policy would be supported by its own independent institutions like the Scottish Fiscal Commission and an independent Scottish Central Bank and Debt Management Office.

Read more detail in the economy paper. 

Currency

As soon as practicable, Scotland would move to its own independent currency, the Scottish pound.

Until then, the pound sterling would remain Scotland’s currency. This would provide continuity for people and businesses.

In that initial phase people who live in Scotland would continue to be paid in sterling, get their pensions in sterling and buy goods and services in sterling. Businesses would continue to trade in sterling.

A new, independent Scottish Central Bank would advise on when the Scottish pound should be introduced, with the final decision made by the Scottish Parliament.

After the introduction of the Scottish pound, the Scottish Central Bank’s role would expand to manage the new currency. The Bank’s role would be focused on ensuring financial stability.

Scotland would apply to re-join the European Union as soon as possible after independence whilst continuing to use sterling at the point of application. The process of establishing a Scottish pound would be closely aligned with the process of re-joining the EU.

As the European Commission has made clear, no timetable for member states joining the eurozone is prescribed.

And as is the case for other new EU member states, joining the euro would happen only if both the conditions for doing so (known as the convergence criteria) were met and the Parliament of an independent Scotland decided this was the right course of action to take. EU member states including Bulgaria, Czechia, Hungary, Poland and Romania still retain their own currencies.

Read more detail in the:

• economy paper
• EU paper

The Building a New Scotland Fund

This Scottish Government proposes to set up a transformational new investment fund to give an independent Scotland the strongest start.

In the first ten years of independence, the Building a New Scotland Fund would invest up to £20 billion in major new infrastructure projects.

Evidence shows that infrastructure investment can boost an economy.

Investments would be made in things like more energy-efficient homes, green transport, improving digital and mobile connectivity and building more affordable housing. 

Read more detail in the economy paper.