AN independent Scotland would initially continue to use the pound, although not in a currency union with the UK, according to one of the central recommendations made in the SNP’s new economic blueprint.

The National has obtained an exclusive copy of the long-awaited report published today which sets out an ambitious prospectus for the country to realise its potential as a nation, increase living standards and reduce poverty and inequality.

Some observers believe the currency issue was a weakness during the 2014 campaign and in a bid to address any future concerns, the Sustainable Growth Commission devoted a large part of its work to the matter.

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The report – Scotland: The New Case for Optimism – points to the precedent of Ireland which continued to successfully use the pound when it became independent without being tied to the UK’s financial arrangements. Ireland went on to establish its own currency, and later joined the euro.

“The Commission recommends the currency of an independent Scotland should remain the pound sterling for a possibly extended transition period,” it stated, before explaining over the longer term it may want to move to a new currency. “A future Scottish Government should put in place the arrangements and financial infrastructure that would support a move to an independent Scottish currency at such time as this was considered appropriate for the economy.”

The report’s overall argument is that Scotland is “without question a rich and successful nation” and one which could achieve even greater prosperity if it had full control of its powers. Increasing prosperity should go alongside raising living standards for all, it says, suggesting a target should be set to reduce poverty levels by 50%.

“Scotland has very significant comparative economic assets and advantages, in terms of natural resources, the education and skills of the people who live in Scotland and sectors with existing and potential global competitiveness,” it said.

“It is energy-rich with oil and gas resources, up to 25 per cent of Europe’s tidal power potential and 25 per cent of Europe’s offshore wind potential. We have world-class universities, a world-wide reputation for premium food and drink products and our country has been named the world’s most beautiful, boosting our outstanding tourism industry.

“We are at the cutting edge of games technology, photonics, life sciences, advanced manufacturing and other industries of the future.”

“Despite these abundant resources, other independent countries with the ability to tailor economic policy to their own needs have performed better than Scotland. The median income of the group of 12 small advanced economies is 14% higher in GDP per head; a gap of £4100 per person. This shows what is possible for an independent Scotland.”

The report takes the first year of independence as 2021/22 – which it says is “illustrative” – and sets out how it would give opportunities to, for example, tailor policies to suit the country’s own needs and economic characteristics, grow the population and lift performance closer to that of other small advanced economies.

Among the other key findings and recommendations are:

- An independent Scotland could begin in 2021/22 with a deficit of 5.5% of GDP.

- It would target a deficit value of below 3% GDP within five to 10 years.

- National debt should not increase beyond 50% of GDP and should stabilise at that level.

 - Corporation tax should not exceed that of the UK’s.

First Minister Nicola Sturgeon established the commission in September 2016 under the chairmanship of former banker Andrew Wilson. Writing in his introduction Wilson said that carrying on under the existing constitutional arrangements would be a “dereliction of our duty to both our own potential and that of the generations to follow”.

He added: “What must be beyond doubt for all sides in the debate is that Scotland has the experience and skill to navigate the current climate and any independence process as well as any of the 193 current members of the United Nations,” he said.

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“We would start an independence transition with greater information certainty and existing institutions and competences than any other country that has ever made the choice. The conditions for success exist. Whether we choose to take the opportunity is a matter, as always, for the people who have made their lives here to choose.”

Ross Greer, of the Scottish Greens, said: “It’s clear that we are heading towards an independence referendum, the question now is when.

“Given the SNP’s decision to shelve last year’s parliamentary majority for a vote, we are currently careering towards the Tories’ hard Brexit with diminishing chances of escape. Shielding Scotland from this disaster and urgently building the case for both a referendum and for independence itself must be a major priority for all of us.”