THE pro-independence Scottish Greens have urged the Government to consider creating a new currency if Scotland leaves the UK.

The party's leader Patrick Harvie warned plans to keep the pound would not allow "true independence" and could damage the campaign for a Yes vote in next year's referendum. He spoke out after Professor John Kay, one of the country's leading economists and a former adviser to Alex Salmond, said an independent Scotland would "most likely" have to adopt a new currency.

He said a deal to keep the pound would place restrictive conditions on how much a Scottish government could spend or borrow.

Mr Harvie – who sits alongside the SNP's Nicola Sturgeon on the board of the pro-independence Yes Scotland campaign – said: "We need to keep the Scottish currency option open, and the Government should be prepared to do the groundwork to ensure we don't leave ourselves forced to accept unreasonable terms in relation to sterling.

"While Finance Secretary John Swinney is interpreting the professor's remarks as an endorsement of the Scottish Government's policy to keep the pound, he must bear in mind many Scots yet to decide on independence may be unconvinced about voting Yes without the promise of true independence. If Scotland gains control of its affairs it is reasonable to expect our economic priorities to diverge from those of the rest of the UK, potentially making our own currency an unavoidable next step."

Mr Kay also warned an independent Scotland would stand "no chance" of retaining a share of the UK's prized EU rebate.