Currency union

George Osborne in EdinburghWe’ve known for two days that George Osborne, Danny Alexander and Ed Balls were about to rule out sharing the pound with an independent Scotland. What we didn’t know until this morning is that they would be joined by Sir Nick Macpherson, the Treasury’s top civil servant, who has written a letter the likes of which are almost never seen in Whitehall.

Belying the reputation of civil servants as cautious, apolitical, and perhaps occasionally slightly verbose types, Sir Nick has written a short, punchy and withering assessment of Scotland’s chances of forming a currency union with the rest of the UK.

In it he says: Read more