The future of Scottish bank-notes could be in doubt following proposed new measures to protect customers from failing financial institutions, it was claimed last night. Clydesdale Bank, one of three banks allowed to print Scottish banknotes, has admitted it would have to consider whether to continue issuing notes north of the Border if the Treasury proposals get the go-ahead.

Alex Salmond, the First Minister, has also voiced fears over the move, claiming the changes posed the “biggest threat” to Scottish notes in more than 160 years. Under current laws, Clydesdale Bank, Royal Bank of Scotland and Bank of Scotland have to lodge funds with the Bank of England to cover the value of their notes, but only for three days of the week – the other four days they can be invested elsewhere, gaining millions of pounds in interest. Read Full Story