by Conrad Landin
in Edinburgh

NICOLA STURGEON suffered a shock defeat at the SNP’s spring conference over the weekend after delegates voted that an independent Scotland should introduce a separate currency “as soon as practicable.”

The SNP’s leadership wants to campaign for a second independence referendum on the basis of the party’s Growth Commission report. The document advocates keeping the pound for a lengthy period after the event of separation.

The report has been criticised by figures on both sides of the independence debate for being too economically conservative and for being in support of entrenching austerity.

SNP depute leader Keith Brown proposed a motion to the conference mandating the party to “aim to complete the preparations” on when an independent currency should be established “by the end of the first term of an independent Parliament.”

But sensational scenes ensued in the conference hall after delegates voted for an amendment which deleted this clause, inserting a new commitment for “the currency to be ready for introduction as soon as practicable after independence day.”

Following the vote the party leadership issued a statement saying delegates had voted to support “plans put forward by the party’s Depute Leader Keith Brown and Finance Secretary Derek Mackay” — even though both opposed the successful amendment.

In her speech to conference yesterday, First Minister Ms Sturgeon steered clear of the currency issue.

On her party’s renewed bid for Scottish independence, she said: “This isn’t a rerunning of 2014. The UK that existed then does not exist any more. Our approach must be different.”

This echoed the leadership’s case for its economic plan, with Mr Brown saying on Saturday: “As strong as our case was in 2014 — and it was a strong case — it has to be stronger next time.”

Addressing the timescale for an independent currency, Mr Brown stated: “We have to try to realise this ambition with caution and common sense.”

The leadership wants the introduction of the currency to be based on six tests including fiscal sustainability, the credibility of a new Scottish central bank and sufficiency of foreign exchange reserves.
But the tests were described as “rubbish” during the debate.

Dalkeith delegate Timothy Rideout, who moved the successful amendment, saying: “We certainly should ditch UK mismanagement but we never will do that by using sterling [and having decisions] made in London.

“There will be no lender of last resort in Scotland and no viable insurance for Scottish bank deposits.”

But the Dalkeith amendment did not remove the commitment to follow the six tests, and amendments which sought to cut this out were defeated on the conference floor.

North Lanarkshire councillor Agnes McGowan had argued that the transition away from sterling should be carried out between a vote for independence and its enactment “so that the new currency can be created virtually on independence.”

Glasgow South West MP Chris Stephens was also unsuccessful in an attempt to take the whole motion back to the drawing board. He told delegates: “There is a difference of opinion at the moment on the merits of the Growth Commission.”

He said he had “a very real concern” over the fact that conference organisers “rejected an amendment on financial regulation” which would have committed to a separate regulatory framework to the City of London.

Scottish Labour leader Richard Leonard said: “The people of Scotland now have a clear choice between austerity and cuts with the SNP and the Tories, or £70 billion worth of investment with a Labour government.”

Ms Sturgeon also used her speech to announce new curbs on Airbnb holiday lets and government loans of up to £25,000 for first-time homebuyers.