Scottish independence: Ed Balls says 'Scotland will not keep the pound'

Shadow Chancellor Ed Balls has rejected the idea that Scotland could negotiate an acceptable monetary union should there be a Yes vote in the independence referendum.

Mr Balls says Alex Salmond is wrong to say an independent Scotland would keep the pound: "It would repeat the mistakes of the euro area, in fact worse, he would be trying to negotiate a monetary union as Scotland is pulling away from the UK".

He went on: "Scotland will not keep the pound if Scotland chooses independence".

Chancellor George Osborne had earlier said a vote for Scottish independence would mean walking away from the pound.

Deputy First Minister Nicola Sturgeon echoed the comments of former Labour First Minister Henry McLeish, who said people in Scotland should not be "fooled by the Chancellor's campaign tactics".