We revealed in this morning’s FT that the Treasury is making it clear to investors in UK debt that if Scotland goes independent, the rest of the UK will still be liable for the debt that it has issued.
In other words, however the debt is carved up, if an independent Scotland defaults on one of its repayments, it will be English, Welsh and Northern Irish taxpayers who will have to pay up.
In one sense, this seems to give Alex Salmond a much stronger hand in any negotiation with the rest of the UK (again, if Scotland becomes independent) about how assets and liabilities should be carved up. After all, if the UK is guaranteeing Scotland’s debts, Salmond could turn round and insist his government will only keep up with repayments in return for another of his demands – for example, being allowed to use sterling.
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