RISHI Sunak has rejected claims his government are trying to snatch power from Holyrood with UK-wide levelling up programmes.

Speaking exclusively to The Herald, the Chancellor said that the constitutional argument in Scotland is the “wrong thing to focus on”, while emphasising the strength of the union as key for the country’s economic recovery.

He would also not rule out future tax rises to mitigate the billions of pounds spent to help protect jobs throughout the crisis but stressed his government’s plan for economic growth centred around “investing in infrastructure, innovation and skills”, insisting that it was “already bearing fruit.”

Mr Sunak, who visited Scotland on Thursday to witness the benefits of his jobs schemes implemented during the pandemic, said he was proud of his policies, with hundreds of thousands of jobs saved in Scotland due to the furlough scheme.

However he would not be drawn on whether he thought Scotland could be economically independent, saying it was not the right thing to concentrate on.

Speaking to The Brian Taylor Podcast, Mr Sunak said: “I’m not here to get into what I think are very divisive questions, because I don’t think that’s anyone’s priority.

“I think, actually, you know, that is a divisive question. What is a more unifying view, I think held by the vast majority of people in Scotland, is that what they want right now is for, particularly me, and the governments that represent them to work together to help us recover from this awful crisis that we face.

“Let’s just really remind ourselves what’s happened. We faced a once in 300-year economic shock, and hopefully a once in a century pandemic.

“Reasonably people would say ‘Look, what we want you to focus on is helping us fix that and grow out of it’.

“We talked earlier about jobs, and about getting people back into work. That’s what people want us to be focussing on. Not, I don’t think, thinking about constitutional settlements at this time.”

The Herald:

When pressed on the matter, Mr Sunak again said that people did not want to talk about independence, adding: “Almost everybody I’ve spoken to has not wanted to talk to me about that. “What they’ve wanted to talk to me about is how does their business recover from the difficult year; how do they create jobs?

“Or there’s people who want to figure out how do they get a new job or make sure that their family has security. Those are the things that we should be focussed on.”

The Chancellor was also asked about claims by opposition politicians from devolved governments that Westminster was attempting to snatch power from them, by using levelling up schemes to invest directly in projects, over their heads.

In particular the SNP has been critical of the plans, which will see Scottish councils and other institutions granted funding directly for projects, including those in devolved policy areas, without the need to consult Holyrood ministers.

Mr Sunak said he rejected the characterisation of a power-grab, explaining the UK Government has the “right” to fund such projects.

He said: “I wouldn’t accept that characterisation.

“I think, as the UK Government, we absolutely have the right and the desire to invest in all parts of the UK. That’s all that is.

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“What people in Scotland want to see, and indeed that’s what they’ve told me when I’ve been here, is us as the UK Government working collectively, collaboratively with institutions in Scotland. Now that might be the Scottish Government, but it also could be local authorities.

“Why is that a bad thing? Local authorities are also close to the people that they represent and if we’re able to have a good constructive relationship with them about investing in local communities here in Scotland, I think that’s a good thing.”

He said the Conservative government was “an engaged government that wants to transform people's lives, wherever you happen to live in the United Kingdom” adding that both he and Prime Minister Boris Johnson “take that responsibility seriously”.

Mr Sunak also praised Scotland’s financial services sector, saying he felt “really good about Glasgow and Scotland’s future” in the industry.

He explained: “Scotland already is, outside of London, the biggest financial services centre.

“160,000 people across Scotland are employed in the industry, it's growing. It's a leading place for some asset management, for example. When it comes to financial services, in particular, I feel really good about Glasgow and Scotland's future.”

The special episode of the Brian Taylor podcast is being released today.