DOWNING Street has issued a response to Nicola Sturgeon’s publication of a new paper on the economic case for Scottish independence.

As the First Minister set out her plans for a “stronger, fairer, more sustainable economy” separate from Westminster during a press conference at Bute House, the chaos-hit UK Government reacted quickly.

Number 10 said that current Prime Minister Liz Truss doesn’t think it is the right time for another referendum.

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The Prime Minister’s official spokesman said: “People in Scotland want their governments to be focused on the issues that matter to them, things like energy security, the cost of living and obviously supporting Ukraine in their war against Russia.

“So the Prime Minister remains of the view it is not the time to be talking about another independence referendum.”

During her statement, Sturgeon set out some of the policies contained in her new prospectus paper.

She said: “For example, with powers to reform the energy market, we can ensure that our renewable resources deliver security of supply and lower costs while also tackling the climate emergency.”

The National: The FM speaks at her party's conferenceThe FM speaks at her party's conference (Image: PA)

The First Minister said that “fiscal credibility and market confidence are essential to the wellbeing and living standards of all of us”.

The Scottish Fiscal Commission would have its powers expanded and effectively replicate the Office for Budget Responsibility, with a central bank and debt management office also being created.

The transition to a new Scottish currency would not be determined by a “fixed timetable” but instead a “set of objective requirements and criteria”, she said.

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But Truss, who faces being outsted after just a few weeks as prime minister, is opposed to the Scottish Government’s plans to hold a second independence referendum next year.

During the Tory leadership race of the summer she said Scotland’s First Minister Sturgeon should focus on domestic issues rather than “agitating” for a second independence referendum.

Speaking at a hustings in Perth, Truss told Tory members she would “not allow” another vote on independence.

Oral arguments on whether Scotland can legally hold indyref2 without the UK's permission were heard in the Supreme Court last week.