'It's time Salmond got out of his bunker': Danny Alexander challenges SNP leader to a debate as row erupts over Scotland keeping the pound



George Osborne rules out currency union with an independent Scotland



Labour's Ed Balls and Lib Dem Danny Alexander back the move

Scottish government accuses Westminster politicians of 'bullying'



Danny Alexander today challenged Alex Salmond to a debate on Scottish independence ‘any time, any place anywhere’ accusing the Nationalist leader of ‘cowering in his bunker’.

The Liberal Democrat Chief Secretary to the Treasury told the Mail that the First Minister should stop ‘hiding away’ and go head to head with him.

The challenge came after Mr Salmond accused the Tories, Labour and Lib Dems of trying to 'bully' him with an unprecedented cross-party warning that an independent Scotland would not be allowed to keep the pound.

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Clash: Alex Salmond was challenged to a debate on the future of Scotland by Lib Dem Danny Alexander, the most senior Scot in the UK government



Mr Alexander dismissed the SNP's claims that an independent Scotland could or should be able to share the pound as 'pure fiction'.

Conservative Chancellor George Osborne insisted the pound was not like a CD collection to be divided in a 'a messy divorce' and Labour's Ed Balls accused nationalists of not living in the real world.



It is a devastating blow for SNP First Minister Mr Salmond’s campaign to persuade the Scots to vote to break away, leading him to grumble that about a bid by the 'Westminster establishment to bully and intimidate'.

Mr Salmond, the leader of the SNP, has challenged David Cameron to debate him. But the Prime Minister has declined on the grounds that the independence debate should be between Scots and amid fears in Downing Street that a Tory leader puts off Scottish voters.

Today Mr Alexander accused the First Minister of cowardice for refusing to debate.

Mr Alexander told the Mail that he – not Scottish Secretary Alistair Carmichael or No campaign leader Alistair Darling – is the most senior Scot in the British government and he should go head-to-head with Mr Salmond.



Mr Osborne used a speech in Edinburgh to insist the currency was not like a CD collection to be divided up in the event of a 'messy divorce'

Mr Alexander said: ‘I’d like to debate Alex Salmond. I will meet him any time, any place, anywhere. It’s time that Alex Salmond got out of his bunker and started to engage in the debate with people in Scotland, who have a vote in this referendum, who disagree with him.

‘I’m the most senior Scot in the UK Government. If he wants to debate the UK Government I am available any time. He’s welcome to come to the Highlands any time.

‘It’s about time that rather than hiding behind the bogus challenge to David Cameron. ‘It’s a way to avoid debate rather than seek it out. This has to be settled by people in Scotland. The participants in this debate should be people who have a vote.

‘I’ve offered to debate him. Alistair Darling—the leader of the Better Together campaign—has offered to debate him. He has refused. It’s pretty pathetic.’

Mr Alexander admitted that Unionists have failed to make a strong enough or a positive enough case.

‘We have to step up our argument because this is the most important decision facing our country. This is the most important decision we will make in my political lifetime.

‘The SNP’s argument is based on asserting things that simply aren’t true. They assert that the rest of the UK will sign up to a currency union. They assert that an independent Scotland will have much more money to spend on all the expensive promises they have made—and yet the opposite is the case.'



Mr Osborne also visited BSW Timber in Cargo near Carlisle, but did not look like he was enjoying it

Mr Osborne said is clear that as Chancellor he could not recommend that the UK could share the pound with an independent Scotland

TORY, LIB DEM AND LABOUR'S UNITED FRONT TO SAVE THE UNION

Conservati ve Chancellor George Osborne: The evidence shows it wouldn’t work. It would cost jobs and cost money and wouldn’t provide economic security for Scotland or for the rest of the UK. People need to know – that is not going to happen.' Lib Dem Chief Secretary to the Treasury Danny Alexander: 'This isn't bluff, or bullying, it's a statement of fact. The SNP's claims that an independent Scotland could or should be able to share the pound are pure fiction.' Labour shadow chancellor Ed Balls: 'You’d be trying to negotiate a monetary union as Scotland is pulling away from the UK. It won’t happen, I wouldn’t recommend it. Scotland will not keep the pound if Scotland chooses independence.'



The Scottish government wants to keep the pound if there is a ‘yes’ vote in the independence referendum due to take place in September.

Scottish nationalists accused the ‘Westminster establishment’ of attempting to bully Scotland into rejecting independence – and threatening to refuse to assume their share of the UK’s debts in retaliation.

Mr Salmond said: 'This is a concerted bid by a Tory-led Westminster establishment to bully and intimidate but their efforts to claim ownership of Sterling will backfire spectacularly.

' The stance of any UK government will be very different the day after a Yes vote to the campaign rhetoric we are hearing now.'

But Mr Osborne used a speech in Edinburgh today to insist: 'If Scotland walks away from the UK, it walks away from the UK pound.'

Mr Osborne went on: 'The Scottish government say “it’s as much Scotland’s pound as the rest of the UK’s”. They are like an angry party to a messy divorce.



'But the pound isn’t an asset to be divided up between the two countries after break-up as if it were a CD collection.

' The value of the pound doesn’t lie in the paper and ink that’s used to print it. The value of the pound lies in the entire monetary system underpinning it.'



Mr Osborne insisted he wants Scotland to keep the pound and the economic security that it brings.

But he added: 'It is clear to me I could not as Chancellor recommend that we could share the pound with an independent Scotland.

'The evidence shows it wouldn’t work. It would cost jobs and cost money and wouldn’t provide economic security for Scotland or for the rest of the UK.

'I don’t think any other Chancellor of the Exchequer would come to a different view. The Scottish government says that if Scotland becomes independent there will be a currency union and Scotland will share the pound.

'People need to know – that is not going to happen.'

The Chancellor later visited Haas-Tek, an export-driven business in Lockerbie, Scotland that specialises in the relocation and installation of industrial machinery and equipment

The blunt warning from Mr Osborne was immediately matched by Mr Alexander, the Lib Dem Chief Secretary to the Treasury, who dismissed claims Scotland could keep the pound as 'pure fiction'.



He said: 'A currency union would leave the rest of the UK highly exposed to fiscal and financial risks from a separate Scotland.



'As a Scot and as Liberal Democrat Chief Secretary to the UK Treasury, on the basis of this analysis, I couldn't recommend a currency union to the people of Scotland and my party couldn't agree to such a proposition for the rest of the UK.



'This isn't bluff, or bullying, it's a statement of fact. The SNP's claims that an independent Scotland could or should be able to share the pound are pure fiction.



'When we vote in September, no one in Scotland should vote for independence in the belief that we could keep the pound.'

And Labour's Ed Balls added: 'It would be bad for Scotland, it would place an unacceptable burden on the UK taxpayer, it would repeat the mistakes of the euro area.



'In fact worse, you’d be trying to negotiate a monetary union as Scotland is pulling away from the UK. It won’t happen, I wouldn’t recommend it. Scotland will not keep the pound if Scotland chooses independence.'

Deputy First Minister Nicola Sturgeon accused Westminster parties of trying to 'bully' Scots