A FORMER economic adviser to Alex Salmond has criticised the First Minister for failing to outline an alternative currency plan in his White Paper on independence.

Professor John Kay, one of the country's leading economists, said it was "rather stupid" not to include a Plan B on currency in case the SNP's proposal to share the pound in a monetary union with the rest of the UK failed.

In a seminar held by the Social Market Foundation think tank, he warned Mr Salmond's exclusive reliance on the currency union proposal could weaken his hand in the negotiations with the UK that would follow a Yes vote in next year's referendum.

He said: "Alex Salmond has said, I think rather stupidly, that there is no plan B. The trouble with having no plan B is you don't have any negotiating power if you don't have a Plan B.

"So there has to be a Plan B. And Plan B has to be an independent currency."

He added: "The Scottish Government has stated definitively that it would continue to use Sterling in a monetary union.

"There is a slight problem about that, in that you have to negotiate a monetary union - it's not entirely clear that you could negotiate a monetary union.

"It's rather hard to see a country that represents 91.5% of a monetary union granting a great deal of oversight of its banking policies and fiscal policies to a country that represents 8.5% of the monetary union."

Mr Kay has previously argued that a new currency would be the most likely outcome for an independent Scotland.

Better Together campaign director Blair McDougall said: "Alex Salmond told us the White Paper would 'resonate down through the ages'. It hasn't even lasted until the weekend."

A Scottish Government spokeswoman said: "Professor Kay's views on this issue are already well-known, and he is entitled to them. The fact is, the pound is as much Scotland's as it is the rest of the UK's."