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SNP: Ruling out of currency union would be 'bullying'

12 February 2014 Last updated at 07:40 GMT

UK Chancellor George Osborne is likely to rule out a formal currency union with an independent Scotland, government sources have said.

Stewart Hosie, the SNP Treasury spokesman, told the Today programme's James Naughtie that the decision amounts to "bullying" and shows "panic" in those campaigning for a "no" vote in September's referendum.

He added that by saying a formal currency union would not be possible, Osborne would "have an immediate impact on sterling balance of trade".

First broadcast on BBC Radio 4's Today programme on Wednesday 12 February.