The call between Nicola Sturgeon and Rishi Sunak has signalled a more constructive relationship than the one between the First Minister and her predecessors.
Boris Johnson and Sturgeon had little time for each other, while Liz Truss was roundly criticised for failing to pick up the phone to the FM at all in her 49-day premiership.
But the warm words that came out of the brief discussion will not paper over their fundamental disagreements. Sunak also faces massive challenges in arresting the decline of the Scottish Tories.
The Record looks at the flashpoints that will dominate the new Prime Minister’s relationship with Scotland.
INDYREF2
The dispute between the Scottish and UK governments on a second independence referendum will almost certainly not be resolved on Sunak’s watch.
Sturgeon wants IndyRef2 to take place next October but her UK counterparts are refusing to grant her the power to hold it. Sunak said yesterday that the SNP should “respect” the result of the 2014 referendum.
During his leadership bid in the summer, Sunak said he could not “imagine the circumstances” in which he would agree to one.
He added: “I am clear that another referendum is the wrong priority at the worst possible moment.”
His description of a referendum as “barmy” is another sign he will be at loggerheads with the Scottish Government.
AUSTERITY
All the indications are that Sunak will have to cut spending to calm the markets – a move that could amount to another round of austerity.
The SNP Government was a ferocious critic of the Cameron government’s austerity agenda between 2010 and 2016, and will pounce on any repeat.
Policies like the bedroom tax and the so-called rape clause dogged the Tories and Sunak will be aware of the pitfalls of similar plans.
Freezing or cutting Holyrood’s budget would also damage the Union and provide a massive headache for Sunak.
FISCAL STATEMENT
Sunak became Prime Minister after the Truss Government’s disastrous mini-budget nearly sank the UK economy.
His Government’s “fiscal statement”, which will lay out plans to balance the books, has been delayed until November 17.
The announcement is crucial for the Scottish Government as its budget is being planned. Without knowing the figures from Whitehall, acting Finance Secretary John Swinney is in the dark about whether he will have to make cuts or have more money to spend.
The delay will cause further tension between both governments and increase Swinney’s frustration.
Swinney has previously announced cuts of £500million from the Government’s spending following new pay awards for public sector workers.
DOUGLAS ROSS
The economy is the main item in Sunak’s in-tray but the struggling Scottish Tories will also have been drawn to his attention.
Leader Douglas Ross was mocked for repeated flip-flops over the future of Boris Johnson as PM.
He also U-turned on his initial support for the Truss mini-budget – and polls show the party could be wiped out at the general election.
Sunak has already been ruthless in dispatching Cabinet colleagues to the backbenches. Will he tell Ross his time is up?
DEVOLUTION
Sunak supports the Government’s controversial policy of direct project funding for Scots councils.
UK ministers believe it is a way for their Government to bypass the Scottish Government and get credit for specific projects.
But it is also seen as an attack on the devolution settlement as responsibility for councils is devolved to Holyrood.
Sunak may well deepen this policy and pursue “muscular unionism” – an aggressive approach to the SNP-led government. During the autumn leadership contest, he also made clear he would scrutinise the record of the Sturgeon Government more.
“When it comes to Nicola Sturgeon, I want to hold the SNP Government to account for what it’s doing and delivering for people in Scotland,” he said.
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