Scottish independence: Currency debate explained

Bank of England money The debate continues over whether a post "yes" Scotland would continue to use sterling as its currency

What currency would Scotland have in the event of independence? It's become one of the big issues, ahead of September's referendum.

On one side, the UK coalition government, made up of the Tories and the Lib Dems, and the Labour Party, say they have ruled out a currency union with an independent Scotland.

On the other, the Scottish government says that following a "Yes" vote, it's in everyone's interests to share the pound and retain the services of the Bank of England.

It's a debate which has sparked discussion on all sides, from politicians to businesses and the financial industry itself.

Here's what you should know about the post "Yes" currency debate.

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The case for a currency union...

In its White Paper blueprint for independence, the Scottish government says a currency union is vital to let companies go about their business, otherwise there could be a damaging effect in the rest of the UK.

It's also argued sterling would benefit from Scotland's continued involvement given assets like North Sea oil and gas.

SNP ministers also say monetary unions still leave room for significant differences in fiscal and economic policies.

They point to Luxembourg and Belgium, which have been in currency unions for decades but have different tax policies.

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The case against a currency union...

The Westminster government says Scotland already has a working currency arrangement with the rest of the UK - and it's called the Union.

It says an independent Scotland would face having to agree to (negotiated) constraints on economic policy with the rest of the country.

The UK government also asks why the rest of the UK should enter into a sterling union with Scotland, when recent experience in the euro area has shown how difficult these agreements are to maintain.

They also raise a further scenario. If Scotland failed to make a formal deal on currency, it would be free to unilaterally adopt sterling - a situation under which the Bank of England may simply continue on without taking account of Scottish conditions.

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Who is saying what?

Former banking bosses....

Bank of England building
  • John Nugée, former Bank of England senior manager: "The first minister [Alex Salmond] has stated firmly that he hopes to conclude a common monetary area with the continuing UK, enabling an independent Scotland to retain the pound, the services of the Bank of England and the financial underpinning of the UK treasury for Scottish financial institutions. It is indeed almost certainly in Scotland's interest to conclude such an agreement. But it is not in Alex Salmond's power to do so single-handedly. It requires the agreement and consent of the continuing UK government, and it is nothing like as clear that, viewed from England, Wales and Northern Ireland, a common monetary area with an independent Scotland is desirable."
  • Brian Quinn, former executive director, Bank of England: "By choosing to announce its preference to retain sterling as the currency of an independent Scotland, the current Scottish Government has effectively surrendered its freedom to determine monetary policy and severely circumscribed its freedom of action in the area of public finance. Choosing to rely on the Bank of England to supervise its banks - and other financial institutions - may prove to be an empty choice if it proves necessary to establish its own supervisory institutions in accordance with what is understood to be EU statutes."

Economists and academics....

Economists look at a bank of screens
  • Jim and Margaret Cuthbert, economists: "Scotland has to be very careful that, in negotiating its relations with bodies like the rest of the UK and the EU, it does not make concessions which will impose constraints which ultimately prove to be crippling. Any choices, for example about forming a sterling currency union with the rest of the UK would have to be viewed very carefully in this respect. An independent Scotland is going to have the will and courage to deal with the other constraints it will face."
  • Dr Jim Walker, founder and chief economist, Asianomics Limited: "Is the British government contemplating the reintroduction of capital controls in which sterling cannot be moved around freely? I ask this in all seriousness given some politicians' and bureaucrats' reactions to the proposition that an independent Scotland would seek to enter a formal currency union with the rest of the UK, a suggestion made in the interests of friendship, continuity and mutual benefit. If capital controls are not being contemplated, then there is no question about Scotland being able to continue using sterling, and clearly therefore a formal currency union would suit both partners best."
  • Prof David Blanchflower, former external member, Monetary Policy Committee: "Should the people of Scotland choose independence in next year's referendum it would make sense for Scotland to enter a formal monetary union with the rest of the UK with the Bank of England operating as central bank for the common monetary area. Independence within a currency union would represent a substantial increase in the economic responsibilities of the Scottish Parliament. A currency union would provide the full flexibility to vary tax and spending decisions to target key opportunities and challenges in Scotland - powers that are currently unavailable to the Scottish Parliament."
  • Prof John Kay, former member, Scottish government's council of economic advisers and visiting professor, London School of Economics: "The currency issue is crucial - Scotland would be right to seek agreement on monetary union with the remaining United Kingdom, but it would be difficult to negotiate an agreement that would be consistent with the fiscal freedom sought through independence.
  • Prof Andrew Hughes-Hallett, economics and public policy, George Mason University, United States: There's nothing which the Bank of England or the British government could do to stop Scotland using the pound if she so wished. It might not be very desirable, as opposed to a jointly-run, that's to say a multi-bilateral arrangement, by agreement between the two countries."

Bankers and business....

Triple As, symbolic of triple A rating
  • Fitch, credit rating agency: "The monetary arrangement following Scottish independence could become a source of uncertainty even if Scotland remained in the sterling currency zone. As the intensification of the eurozone crisis showed in 2012, a monetary union without fiscal and banking union is unstable and the prospect of an exit from a monetary union could lead to high volatility and market turbulence, potentially detrimental to all members."
  • Jim McColl, founder of Clyde Blowers, co-signatory in a letter to the Scotsman: "It is in the interests of Scotland and the rest of the UK - the financial firms, wider business community and the people - to maintain the same currency. Many Scottish firms have the vast majority of their customers south of the Border, and Scotland is the second largest export market for English business. The strength of sterling in part relies on Scotland's North Sea oil and gas reserves."
  • Oliver Harvey, strategist, Deutsche Bank: "Scotland fits an optimum currency area with the rest of the UK very well."
  • Rod MacLeod and Hamish Patrick, banking and finance lawyers, Tods Murray: "If an independent Scotland keeps the pound, there needs to be an appreciation that, at best, Scotland will have limited control over monetary policy as the junior partner in any currency union or even less influence if a currency pact is rejected."

Politicians and campaigners....

Notes of sterling
  • Alistair Darling, leader of Better Together and former UK chancellor: "We are being asked to take a huge leap into the unknown. When Alex Salmond can't even tell us what currency we will have in our pocket it's little wonder people aren't willing to take the risk."
  • Blair Jenkins, chief executive, Yes Scotland: "The pound belongs as much to Scotland as it does to the rest of the UK. There is no question of an independent Scotland not being able to use sterling because that would be in the best interest of everybody in these islands."
  • Sir John Major, former UK Prime Minister and chancellor: "A currency union, which the SNP assume is negotiable, would require the UK to underwrite Scottish debts. That cannot, will not, happen if Scotland leaves the Union. There can be no halfway house, no quasi-independence underpinned by UK institutions."
  • John Swinney, Scottish finance secretary: "Scotland will continue to use the pound, just as we do today because, in Alistair Darling's own words, that is the 'logical' and 'desirable' arrangement for an independent Scotland and the rest of the UK."
  • Carwyn Jones, Welsh first minister: "I just don't know how this works. If you have a currency union, who decides on monetary policy? You've got two governments potentially with a view on that. "It's a very messy system from Wales's point of view. I'd be very, very worried about any currency system that involved the need to get agreement from different governments."

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Scotland Decides: SCOTLAND VOTES NO

  1. No 2,001,926
  2. Yes 1,617,989
After 32 of 32 counts Results in detail

Referendum Live

  1.  
    11:31: 'Flame continues to burn'

    Jamie Hepburn, SNP MSP for Cumbernauld and Kilsyth, tells the BBC News Channel: "It's been rather amazing to see the resilience of so many thousands of people who were involved in the Yes movement, determined that the flame continues to burn."

    The 20,00 people who have joined the SNP since the result, joined because they "believe in independence", he adds.

     
  2.  
    11:27: Voting age: The other parties

    Where do the other parties stand on lowering the voting age? Mr Miliband called for votes at 16 in his party conference speech this time last year.

    The Liberal Democrats have also called for it, and MPs voted in favour in a Commons debate in 2013.

    Labour leader Ed Miliband

    But the Conservatives are against the change. When Mr Miliband proposed it last year, the Tories accused him of "student politics".

     
  3.  
    11:19: Hotel 'sold after No vote'

    An Edinburgh hotel has been sold for £25.7m to a real estate investor who said the deal was conditional on a referendum No vote.

    Redefine International, a real estate investment trust, bought the five-storey, 138-bedroom Double Tree by Hilton hotel in Edinburgh city centre.

    Hilton

    Chief executive Mike Watters said the deal had been "conditional" on Scotland voting to remain part of the UK, saying it was a matter of economics and not politics.

     
  4.  
    11:12: Why sign up now?

    Comedian Julia Sutherland explains why she has just signed up as a member of the Green Party - and why membership of political parties like the SNP is rocketing.

    "It's that sense of helplessness after the referendum," she tells BBC Radio Scotland.

    "That was the way that we were trying to affect change for the future of Scotland and because we weren't able to do that, because we didn't get the vote we wanted, this is what we do now because we feel part of a movement, we feel forever changed.

    "We feel we're engaged in a way that we weren't before."

     
  5.  
    11:10: English votes for English laws James Landale Deputy political editor

    Tory MPs invited to lunchtime meeting of 1922 committee at Westminster on Thursday to discuss English votes for English laws.

     
  6.  
    10:46: New movement?

    BBC Radio Scotland has turned to the issue of whether there is a new political movement in Scotland.

    Journalist and commentator Alex Massie says: "Some of them [Yes voters] are doing this out of denial because they haven't quite got round to recognising what the settled will of the Scottish people is."

    Comedian Julia Sutherland, a Green Party member, says she disagrees. "It's not because I haven't accepted the decision - it's very much because I have.

    "Twenty thousand people have joined the SNP and they've got over 40,000 more than the Lib Dems in the rest of the UK - I think that sounds like a very clear message about how engaged people are."

    In recent days more than 3,000 people have joined the Greens, which now has more than 5,000 members, she adds. "It's really patronising to suggest that's just about people being upset."

     
  7.  
    10:34: Jim Murphy's role Laura Kuenssberg Chief Correspondent

    Subplot at lab conf, pressure on Jim Murphy to take on Scottish leadership - tricky as Johann Lamont in place, but he proved huge worth in indyref.

     
  8.  
    @bbcscotlandnews 10:32: Referendum - Your Views

    Gary McAlonan: The legacy of the referendum should empower everyone one to keep a pulse with all the current politics of the day. We need to be the watchers of our politicians and keep them in line with the will of the people. When we switch off, the politicians seem to rush through bills that not many people want.

    Lee Wootton: Re, Iain Brown from Dundee. Funny that you believe the people who voted majority "Yes" should get a vote but those who voted majority "No" shouldn't? If the vote had gone the opposite way would you now be calling for no under 18's to vote? Gerrymandering much?

    Mark, Dunfermline: A lot of spite and vengeance being poured forth by frustrated Yes campaigners. Can they not accept that they were by far in the minority? Politicians come and go, priorities and policies change over time, and governments never have enough money to do what they hope to do. Vote for the future knowing that, not remembering one failed moment in the past.

     
  9.  
    10:26: Salmond spat

    First Minister Alex Salmond has written a letter to The Herald in reply to an article on Monday by commentator and Salmond biographer David Torrance, in which Mr Torrance praised the SNP leader's "significant personal achievement" but questioned his economic analysis and referred to "pettiness" and "downright rudeness".

    Outgoing First Minister Alex Salmond

    In his response, Mr Salmond said: "First, I hardly know David Torrance. And secondly - and much more problematically for a biographer - he doesn't know me at all."

    Mr Torrance has tweeted in reply: "I think this might be the proudest moment of my career..."

     
  10.  
    10:18: Youth vote

    Just a reminder of why today's discussion focused on the issue of 16 and 17-year-olds voting - Alex Salmond is to call for people in this age group to be given the vote at all future elections.

    He's set to make the plea this afternoon, as Holyrood reconvenes for the first time since the referendum.

     
  11.  
    10:12: Young electorate

    Glasgow boasts the biggest population in Scotland and also has a high number of teen voters. Figures from the 2011 Census show the city had more than 18,000 people aged 13-15.

    Depending on when their birthday falls, these youngsters will now be aged 16-19.

    Teenagers
     
  12.  
    10:03: How did teenagers vote?

    How did 16 and 17-year-olds vote in the referendum?

    According to a snap poll by Lord Ashcroft asking voters how they had cast their ballots, 71% voted Yes.

    More than 100,000 16 to 18-year-olds had registered to vote on Thursday.

    Referendum ballot paper
     
  13.  
    Text 80295 09:56: Referendum - Your Views

    Tom, Rosyth: Can anyone explain to me why 200 celebrities can sign a letter and make pleas on national TV for Scotland to stay in the Union but Andy Murray has to apologise for one innocuous tweet supporting independence?

    Kevin, Dundee: I'm totally disillusioned the No side didn't make one positive argument for keeping the Union. I'm off to Ireland: a small independent EU country who had the guts to take their sovereignty.

     
  14.  
    09:48: Referendum legacy

    Rev Galbraith adds: "I would like to think the referendum legacy would be that they [young people] see that they have a voice and if it is used wisely they can make a difference."

     
  15.  
    09:40: 'Their moment'

    Reverend Neil Galbraith, founder of the charity Glasgow the Caring City, says it would be hard to "put the genie back in the bottle".

    "In the referendum they [young people] were given the opportunity to have their moment - they could start to shine officially. Young people do remarkable work, there are many young folk who are exceptional," he tells BBC Radio Scotland.

    "The referendum has given them the chance to come to the fore...

    "It's young people who are the driving force behind the social change that we need to become a more compassionate society."

     
  16.  
    Text 80295 09:37: Referendum - Your Views

    Pat, Glasgow: It has made me decide that I shall never vote for the unprincipled Labour, Liberal and Conservative politicians, i.e. all of them. They told so many lies, they got into bed with each other.

    Jim: Since the result was announced, everything that has happened since has only reinforced my view that I was on the right side of the debate. And I now absolutely believe that we will be independent one day. PS. 16-year-olds should have the vote, although I would prefer if they avoided joining political parties until they were a bit older.

    G, Glasgow: Great idea to allow 16+ to vote. Able to look at all the sides and make up own minds, [they] are the best electorate, not just believing mainstream media.

     
  17.  
    09:31: Young people 'not independent'

    Luke Gittos, law editor at online magazine Spiked, says the young voters issue relates to independence.

    "16 and 17-year-olds are not independent people. They are dependent on the institutions that are around them - their families, their schools, their political parties," he tells BBC Radio Scotland.

    Polling station

    "They don't come to their political views as a result of an independent reaction to the world. They come to it through information handed down to them from the people around them - and I think that's problematic."

     
  18.  
    09:20: Youth vote

    Kyle Thornton, former chair of the Scottish youth parliament, says 16 and 17-year-olds "very much wanted to make up their own minds" on the referendum.

    "There was a responsibility that came across," he tells BBC Radio Scotland.

    "Young people were very clear that they felt really responsible about their vote and they wanted to learn and take a decision based on information."

    He says they should be allowed to vote in all UK elections and referendums.

     
  19.  
    Text 80295 09:10: Referendum - your views

    Richard, Aberdeenshire: I think there is an argument 16 and 17-year-olds should be able to vote but I'm also hit with a sense of predictable disappointment that the parties who are supporting this move are the parties that would benefit from it.

    James, Dalry: Oh definitely. You can't ask 16 and 17-year-old to vote on one of the biggest issues to me in the UK - and then tell them 'Oh you can't vote for a party' [in an election]

     
  20.  
    Text 80295 09:09: Referendum - Your Views

    Ali: If 16-year-olds are old enough to marry and have children and join the Armed Forces, surely they should be able to vote in all elections.

    Ben, Partick: Not a good idea for 16-year-olds to vote. At election they were carefree 71% Yes. Over 65s were 73% against. Fear motive - they had lived.

    Ronald: A vote for independence meant being able to look other Europeans in the face. Not doing so leaves us staring at our feet. Simple as that.

    Gayle: Every argument so far against teenagers voting, was made about giving women the vote. Anyone who has a teenager will be laughing at the implication they have any influence over their teen.

     
  21.  
    09:04: Yes 'feeling persists'

    Independence campaigners, broadcaster Lesley Riddoch and musician Pat King, have been talking to BBC Radio Scotland about where the Yes movement goes from here.

    Riddoch says strong feelings on Scottish independence "are still there in spades".

    While King says: "One of the next things the Yes movement can do - and I think a Yes movement persists - is to find a way to talk to itself, to meet with itself, and to educate itself.

    "The one thing that caused a No vote was an argument about viable economics or currency - we all need to become economists. What that will do is give us a basic confidence in the viability of [an independent] Scotland."

     
  22.  
    09:00: 'Funds to decrease'

    The Times reports that public funding given to Scotland by Westminster could fall over time as more fiscal powers are devolved.

    The Times

    The three UK party leaders have vowed to retain the Barnett formula as part of efforts to persuade Scottish voters to remain in the Union.

    But since last week's vote, Tory MPs have voiced anger at the funding model, which grants £1,600 a head more in public money to Scotland than England.

     
  23.  
    Text 80295 08:57: Referendum - Get Involved

    Stephen, Ayr: Can the failed Yes brigade stop blaming everyone else for an overwhelming No. The majority have spoken. Accept it and move on.

    Jon, East Kilbride: Give us all a rest from this debate. The Yes were well beaten and now harping on about anything: accept you were thumped and get on with life.

    Iain Brown, Dundee (weare45): I believe 16/17-year-olds should be allowed to vote because their contribution to society can make a difference for the future. At the same time, over 70-year-olds should not be allowed to vote. The reason being the kids want what's best for the country going forward, whereas over 70s are stuck in the past and make no work-related contribution to our society.

     
  24.  
    @bbcscotlandnews 08:51: Andy Murray - Your Views

    Alistair Gellatly tweets: And neither he should. Plenty people gave their opinion, many with less right to do so.

     
  25.  
    08:43: Referendum - Get Involved Louise White Presenter, Morning Call

    Alex Salmond is expected to call for 16 and 17-year-olds to be given the vote in all future elections. Do you agree?

    Do you feel more empowered as a result of the referendum?

    Morning Call

    Get in touch via 0500 92 95 00 or text 80295 and listen live to the programme here.

     
  26.  
    08:39: View from NI Mark Devenport BBC News NI Political Editor

    There tends to be a different message here if you talk to nationalists and unionists.

    There is an element of common ground. Which is that Northern Ireland has long been asking for control over its own rate of corporation tax - that's because the headline rate for this tax in the Irish republic is much lower than the UK rate.

    Unionists and nationalists are generally saying 'Look we do want to get that power' and we're expecting David Cameron to make a decision on this - expected to be a positive one - once the Scottish referendum is out of the way.

    But in relation to any broader powers I think there is quite a lot of both economic and political disagreement, with nationalists, in particular Sinn Fein, calling for full fiscal to be devolved to Stormont but unionists saying 'Hang on, we're not sure politically about this' because it would dilute the union or economically.

     
  27.  
    08:30: Harman: PM being divisive

    Ms Harman says she finds it "a bit depressing an unworthy" that the prime minister should approach the devolution issue with the attitude: "'Oh well, if Scotland's going to have extra powers then we'll divide everyone up in England against Scotland'.

    Harriet Harman

    "I think that's divisive and not the right way to do things."

     
  28.  
    08:20: Harman: Powers have to happen

    "It was an absolute promise that was made," says Ms Harman on the issue of further powers for Scotland, adding: "It has absolutely got to be delivered. If you make a promise on the eve of an election... than that it absolutely what is going to happen."

    She says shadow chancellor Ed Balls "absolutely" backs the idea of devolving income tax and other powers to Scotland.

    What is being promised to England "makes no difference" to what is being promised to Scotland, she adds.

     
  29.  
    08:15: Harman on Scotland 'alienation'

    Labour deputy leader Harriet Harman says there is a "major issue" in Scotland with people feeling they cannot have any confidence about jobs or their futures.

    The party needs to address that feeling of "alienation and resentment that was so clearly there," she tells BBC Radio Scotland.

     
  30.  
    08:14: Murray would rethink indyref tweet

    Andy Murray has spoken publicly for the first time about comments he made on the eve of the Scottish referendum. The tennis star was criticised for sending a tweet supporting independence.

    Andy Murray

    "I don't regret giving an opinion. I think everyone should be allowed that," he said.

    "The way I did it, yeah, it wasn't something I would do it again. It was a very emotional day for Scottish people and the whole country and the whole of the UK - it was a big day.

    "The way it was worded, the way I sent it, is not really in my character. I don't normally do stuff like that. So, yeah, I was a bit disappointed by that. It's time to move on.

    "I can't go back on that and I'll concentrate on my tennis for the next few months."

     
  31.  
    08:03: View from Wales Sian Elin Dafydd BBC News

    Wales First Minister Carwyn Jones has emphatically said there is a need to rebuild the UK and give more powers to Wales.

    He's repeatedly called for a constitutional convention on the devolution of the UK. He's been doing it for more than two years - and some say he's been ignored.

    Yesterday he told the Labour Party Conference in Manchester that support for Welsh independence would grow unless Labour honoured its commitment to rebuild the UK.

    He says people don't want independence but they are attracted to parties like the SNP, UKIP and Plaid Cymru because they are so fed up with the status quo.

     
  32.  
    07:56: Lamont 'quitting' rumours Glenn Campbell BBC Scotland news

    Several newspapers are reporting rumours speculating that Labour leader Johann Lamont is considering stepping down as leader of the Scottish Labour party.

    Johann Lamont and Ed Miliband at the Labour Party conference in Manchester

    Her press spokesperson denied that last night and pointed to her Labour conference speech about leading the party into the 2016 Holyrood elections.

    It doesn't seem that there is any imminent announcement from her.

     
  33.  
    07:52: Harriet Harman interview coming up... Gary Robertson BBC Radio Scotland

    As Ed Miliband delivers his leaders' speech to Labour's conference @HarrietHarman #bbcgms 0810.

     
  34.  
    07:49: Analysis Glenn Campbell BBC Scotland news

    I think Alex Salmond will tell MSPs that, in his view, the referendum was a success.

    Clearly he didn't win independence, but he'll argue the high levels of voter participation and the high levels of interest from media from all over the world are things that people on both sides of the argument can be proud of.

    I think he'll also commit the Scottish government - and the SNP - to hold the UK political parties to the promises they made on further devolution and protecting the funding formula that supplies the Scottish government with the cash to spend on devolved services.

    Outgoing First Minister Alex Salmond

    He'll also call for votes for 16-year-olds in the next UK general election and subsequent polls because of the interest and engagement they showed in the independence referendum.

    I know that Labour leader Ed Miliband has been supportive in the past and there were reports overnight that he will commit to this in his conference speech later.

    The Lib Dems are also in favour of this but the Conservatives are against it.

     
  35.  
    Text 80295 07:45: Referendum - Get Involved

    ATB, from Sunny Leith by Sea, Zane: One of the funniest things I've heard this week (it is only Tuesday, mind you) it all boils down to a simple slogan - "Wales misses out on funding of around £300m per year, but there is some doubt over the funding calculations." They're going to struggle to get that out on Twitter, since the slogan itself is 113 characters!

    Norrie in Stevenston: Everybody, including the media, keep going on about more powers for Scotland but this wasn't on the referendum ballot paper. Why do we need more powers? Just more layers of bureaucracy and expense we don't need; things are fine the way they are thanks.

     
  36.  
    07:41: 'Why I bet £900k on the indyref'

    One man bet £900,000 on a No vote in the Scottish independence referendum...and won.

    Indyref bet

    He has given a fascinating insight to the BBC on his thought process for a significant political gamble...

     
  37.  
    07:36: SNP 'surge'

    The Herald reports that the SNP is on course to become the UK's third biggest political party, with a 62% surge in membership following the referendum.

    The Herald newspaper

    And comedian Billy Connolly predicts trouble ahead should Prime Minister David Cameron fail to honour his promise of further powers for Scotland.

    Read our newspaper round-up here.

     
  38.  
    @bbcscotlandnews 07:34: Referendum - Your Views

    Julie Thomson tweets: A No vote doesn't mean a #Labour vote. #SNP membership growing.

     
  39.  
    07:31: Scottish papers

    The Scottish newspapers are continuing to reflect on the fallout from the referendum.

    The Scotsman

    The Scotsman quotes the Leader of the House of Commons, William Hague, as saying that the pledge of flagship new powers for Scotland will be honoured.

     
  40.  
    07:30: After the dust settled... James Cook Scotland Correspondent, BBC News

    Politicians return to Holyrood after Scotland rejected independence.

    Holyrood
     
  41.  
    07:26: The Big Yin fires a warnin...

    Billy Connolly has been giving his thoughts on Scotland's referendum.

    The comedian said there would be trouble if David Cameron did not honour his promise of further powers.

    Billy Connolly

    Speaking at the London premiere of What We Did On Our Holiday, he said: "It's 50:50 - 50% of the country are delighted, 50% are disappointed. But Scotland will get used to the idea.

    "If Mr Cameron keeps up his promises we should be okay. If he doesn't there'll be hell to pay."

     
  42.  
    Text 80295 07:24: Referendum reaction

    Dave, Aberdeen: I believe William Hague said a few days ago that any money raised by new powers over income tax would be clawed back with a £ for £ reduction in the Barnett Formula. Is this true?

     
  43.  
    07:21: 'Bitter-sweet occasion' Colin Blane BBC Scotland news

    This will be a bitter-sweet occasion for Scotland's outgoing first minister.

    Alex Salmond lost the referendum and is preparing to stand down but he does so against the backdrop of a sudden surge in membership for the pro-independence parties.

    His own SNP has added more than 20,000 new members in four days - an 80% increase - which means it has nudged ahead of the Lib Dems to become the third largest party in the UK.

    Mr Salmond is expected to tell the Scottish Parliament that both sides in the referendum can take pride in the campaign and in the huge turnout.

    He'll also say the way 16 and 17-year-olds participated makes the case for them to be given the vote in all elections.

     
  44.  
    07:20: Get Involved Thomas McGuigan BBC Scotland News

    Something you want to get off your chest following Scotland's referendum vote? Send us your thoughts via email, text 80295 or tweet @bbcscotlandnews using #bbcindyref

     
  45.  
    07:18: 'Reflection time'

    Ahead of today's debate, Presiding Officer Tricia Marwick will open proceedings with "time for reflection", a Holyrood slot normally reserved for spiritual or philosophical contributions from religious or secular figureheads.

     
  46.  
    07:16: Holyrood debate

    The debate on the future of Scotland that follow Salmond's statement will go on for two days.

    Alex Salmond

    We'll bring you all the latest lines today and tomorrow as they happen.

     
  47.  
    07:12: Scots made right choice - Miliband
    Miliband speaking

    Also coming up - Labour leader Ed Miliband is expected to tell his party's conference in Manchester that Scotland made the right choice voting against independence.

    But he will say a country that comes close to splitting apart "is not a country in good health".

     
  48.  
    07:09: Salmond successor

    The SNP parliamentary group will also meet today, with nominations for Mr Salmond's successor expected to open on Wednesday.

    Nicola Sturgeon

    Almost every member of the Scottish cabinet has publicly backed his deputy, Nicola Sturgeon, to replace him as SNP leader and first minister.

     
  49.  
    07:05: Parties respond

    The Scottish Labour, Lib Dem and the Conservative parties will also offer their response to the electorate's decision to reject independence by 55% to 45%.

    Labour leader Johann Lamont is likely to offer to find common ground with the SNP.

    The Lib Dems are expected to urge Yes campaigners not to be bystanders as Holyrood pushes for further powers.

    And the Conservatives will accuse the Nationalists of having no intention of accepting the referendum result.

     
  50.  
    07:02: Salmond vote call

    Mr Salmond, who announced after the No result that he would stand down in November, is also expected to call for 16 and 17-year-olds to be given the vote at future elections.

    Outgoing first minister Alex Salmond

    He is also to vow to hold the UK parties to account over further powers.

     
  51.  
    07:01: Holyrood debate

    First Minister Alex Salmond is to address the Scottish Parliament later - for the first time since Scotland voted against independence.

    MSPs will also hold a debate on the outcome of the referendum.

     
  52.  
    07:00: Referendum reaction Thomas McGuigan BBC Scotland News

    Good morning and welcome to today's live page coverage of the latest post-referendum news and analysis.

     

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