The pound rose on Wednesday morning after the UK Supreme Court rejected the Scottish government’s move to hold a referendum on independence without Westminster’s consent.
Ruling Scottish National Party (SNP) wanted to hold a referendum in October 2023, bypassing Westminster, arguing that a vote would be “advisory” and have no legal impact on the union between England and Scotland.
But the Court ruled that the SNP is unable to press ahead on this issue without agreement between the two parliaments, one in Edinburgh, the other in London.
SNP leader and first minister Nicola Sturgeon said she was disappointed by the ruling but tweeted: “a law that doesn’t allow Scotland to choose our own future without Westminster consent exposes as myth any notion of the UK as a voluntary partnership & makes case for Indy.” She said she will press on with attempts to hold a second referendum.
The pound has been on an upward trajectory since the dark days of late September when it threatened to hit parity against the dollar. Since hitting $1.07, it’s rebounded to around $1.19, helped by a market-pleasing Autumn Statement last week – and a change of prime minister and chancellor. Still, this issue is likely to be a slow burner in the coming years.