Economists have welcomed the Treasury’s pledge to foot the bill for all of Britain’s sovereign debt – regardless of a ‘yes’ vote for Scottish independence – while Scottish first minister Alex Salmond called it “common sense”. But it is just “a statement of the bleedin’ obvious”, says Robert Peston on BBC.co.uk. “All £1.4trn of it” is the National Loans Fund’s obligation and “nothing can change that”.
So why make the announcement? Because investors have asked for clarification on what would happen if the union breaks up. The uncertainty could have pushed Westminster’s borrowing costs higher.
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