The British government closed the door to a formal agreement with Scotland for its continued use of the pound if it votes to become independent next year, citing the tumult in the 17-nation euro region during the debt crisis.
U.K. Chancellor of the Exchequer George Osborne suggested a vote for Scottish independence next year would imperil the use of the British pound as the new state’s money because political union is needed to operate a single currency.
Prime Minister David Cameron hasn’t made a “convincing case” for opting out of 133 European Union police and criminal-justice measures, a panel of lawmakers said, warning of “negative repercussions” for the U.K.’s security.
U.K. Chief Secretary to the Treasury Danny Alexander wrote to most Cabinet ministers asking them to identify cuts of a further 10 percent of their departmental budgets in the year starting April 2015, a government official said.
U.K. Chief Secretary to the Treasury Danny Alexander reiterated a call for the European Union to freeze its budget, saying “excessive spending” risks eroding support for the austerity being imposed in its member states.
Leaders of the U.K.’s three-week-old coalition government sought to limit political damage from their first crisis and preserve their deficit-cutting plans after Chief Secretary to the Treasury David Laws resigned over revelations about his parliamentary expenses.