An independent Scotland would risk losing the pound, George Osborne warns Treasury report says that sharing pound will have 'significant risks' for UK Chancellor may veto deal if Scotland votes for independence in 2014 Alistair Darling: 'SNP Government cannot promise to keep the pound' By Alan Roden George Osborne will today warn that Treasury chiefs could veto SNP plans for a 'currency union' between an independent Scotland and the UK. A major Westminster report will challenge the 'economic rationale' for a deal to share the pound because of the 'significant risks' involved. 'Both states would become exposed to fiscal and financial developments in each other's economies,' the 118-page study concludes. Damning: George Osborne could veto any plan to share the pound with an independent Scotland as the deal could be risky, which would be a huge blow to Alex Salmond should he win the 2014 referendum The findings, to be unveiled by the Chancellor in Glasgow today, are a devastating blow to Alex Salmond's plans for a sterling zone if there is a Yes vote in the September 2014 referendum. Mr Osborne's predecessor, Alistair Darling, has also warned that agreement on using the pound 'isn't like dividing up a record collection after a break-up'. Backing: Former Chancellor, Labour's Alistair Darling, says that Osborne is right and that the SNP cannot promise to keep the pound The interventions have raised fresh fears that a separate Scotland could be forced to join the euro, with today's report confirming that an opt-out is 'far from certain'. Other options are the 'unilateral adoption' of the pound without the agreement of the UK Government, which would leave Scotland with no control over monetary policy. Alternatively, a new Scottish currency would hand Holyrood the full sovereignty the SNP claims to want. But that comes with a risk of high borrowing costs and a 'rapid destabilising flow of money' if people switch assets to a strong currency like the pound. Mr Osborne and Treasury Chief Secretary Danny Alexander will today warn that all post-independence currency options are therefore 'less economically suitable' than the present arrangement. The findings are the result of months of work by the Treasury, aided by consultations with academics, economists and other experts. Last night, SNP Finance Secretary John Swinney insisted the pound is 'every bit as much Scotland's currency as it is England, Wales and Northern Ireland's'. But the report states: 'A formal sterling currency union would only be possible if both an independent Scotland and the continuing UK could reach an agreement that satisfied both countries' economic interests.' The experts warn that a separate Scotland would have a 'narrower economic and fiscal base, and be exposed to a number of volatile sectors such as finance and energy, including North Sea oil and gas'. The report adds: 'A formal sterling currency union is very different to the current arrangements and would be a profound economic change for both states.' Future: The economic stability of an independent Scotland, based at Holyrood in Edinburgh (pictured) could be impacted if the UK Treasury withdraws the pound Former Labour Chancellor Mr Darling said yesterday: 'Let there be no doubt: the SNP Government cannot promise that we would keep the pound. The pound is not a physical asset, it is a system. If we leave the UK and the UK's monetary institutions, like the Bank of England and UK Treasury, we leave the UK pound.' # But Mr Swinney maintained: 'The sharing of the pound between an independent Scotland and the rest of the UK is the common sense position supported by the [Scottish Government's] Fiscal Commission. A sterling zone is also in the overwhelming economic interests of the rest of the UK.