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Sunak: Now is not the time for 'divisive' talk of independence

Nationalist demonstrators welcomed Chancellor of the Exchequer Rishi Sunak to Rothesay on the Isle of Bute, -  Jeff J Mitchell/PA
Nationalist demonstrators welcomed Chancellor of the Exchequer Rishi Sunak to Rothesay on the Isle of Bute, - Jeff J Mitchell/PA

Rishi Sunak has said Scotland has a crucial role in driving the UK’s economic recovery from coronavirus, as he called for the “divisive” issue of Scottish independence to be set aside.

The Chancellor, who visited Glasgow and the Isle of Bute on Friday, described Scotland as one of the UK’s “power brands” in the tourism sector and said the last few months offered a “good example” of the union working well.

He was the fourth prominent UK minister to travel to Scotland within the last three weeks, as part of a deliberate strategy designed to highlight the work of the British Government and turn the tide against a rise in support for independence and the SNP.

Asked about the recent rise in support for independence, he said: “I don't think now is the time to be talking about these constitutional questions, I think everyone's sole focus and certainly my sole focus right now is doing what we can to protect people's jobs and their livelihoods at what is an incredibly difficult time for our economy.

"That's what I think everyone should be focused on, let's not focus on these divisive constitutional questions, let's focus on rebuilding for the future."

Mr Sunak highlighted the levels of financial support provided in Scotland during the crisis, with almost a third of jobs supported through the furlough scheme and almost £2.5 billion provided in loans for businesses. He also highlighted a UK-wide approach to providing PPE, deploying the army to carry out coronavirus testing and cross-border efforts to develop a vaccine.

The chancellor visited a cafe in Rothesay -  Jeff J Mitchell/PA
The chancellor visited a cafe in Rothesay - Jeff J Mitchell/PA

He added: "Tourism is a really important industry for the United Kingdom and Scotland is one of our power brands when it comes to UK tourism, and Scotland can help drive our recovery in that regard.”

The visit follows widespread evidence that the Scottish economy is recovering more slowly than in the rest of the UK, in part due to the slightly slower emergence from lockdown, as well as a greater reliance on tourism and a downturn in the oil and gas industry.

Keith Skeoch, the chief executive of Standard Life Aberdeen, said: “The furlough scheme has been very effective, but the industries in Scotland are very different to the UK. It’s very dependent on oil and gas, it has a very strong presence in financial services, then there’s a broader thrust of manufacturing.

“So I think we are going to see a structural rise in unemployment in Scotland and I think the recovery here is going to be very slow. I think it won’t be until late 2021 if not early 2022 before the Scottish economy gets back to its previous level of output. So it’s going to be tough.”

Reacting to Mr Sunak’s comments, opposition parties expressed disappointment that he once again ruled out extension of the furlough scheme, currently due to expire in October.

The Chancellor said it would not do people “any favours” to extend the scheme if their jobs were not sustainable. He said: “It would be easy to tell people it’s going to be all fine and that job will be there. That won’t be true for everybody.

“People not being attached to a workplace is not good for their long term prospects. So, if it’s not going to be the case that that job is going to be there, we are better off providing new opportunities and different types of support for those people.”

Wendy Chamberlain, the North East Fife MP and constitution spokeswoman for the Scottish Liberal Democrats, said: “Despite warnings of mass unemployment, the Chancellor is taking a huge risk pressing ahead to end the furlough scheme, pulling the rug out from under countless households.

"Almost a million people in Scotland have benefited from the various support schemes. Many of them will be thrown back into chaos unless the Chancellor changes course and ensures that support continues for the worst-hit sectors and areas still in lockdown.”