Nicola Sturgeon told Rishi Sunak that she intends to call her independence referendum next year “with or without” the UK government’s agreement.

During their first face-to-face meeting, she also insisted that the cost of living crisis has been worsened by Westminster’s policies.

The first minister said that despite “deep political disagreements” she hoped to work closely with Mr Sunak and to enjoy a “good relationship”.

Speaking ahead of the 38th British-Irish Council summit in Blackpool, she said relations between Edinburgh and London could improve if there were a “significant change in attitude from the UK government”.

She later told LBC Radio: “It was a cordial and constructive meeting. I think both of us want to try as hard as we can to build a good constructive working relationship.

“We’ve got deep political disagreements. I think we can all take that as read. But we’ve also got an obligation to work together in the interests of the people we serve. 

“He has said a lot I agree with, as it happens, about the importance of electoral mandates in his own context, but I also said I intend to honour that mandate, with or without the UK government’s agreement, albeit entirely constitutionally and legally.

“But the right thing to do would be for the two governments to sit down and agree a process that lets the Scottish people decide.”

The Prime Minister urged Ms Sturgeon and other representatives of the devolved governments to be “pragmatic” about the scale of the difficulties facing the UK and to avoid division in trying to rebuild the economy.

Mr Sunak and his chancellor Jeremy Hunt are considering a 50-50 split of spending cuts and tax rises to address an estimated £53 billion black hole in the public finances.

The Prime Minister will tell delegates attending the British-Irish Council in Blackpool: “We face huge challenges from global economic headwinds to war in Europe. So let’s be pragmatic. Let’s work together in our shared interests.

“Let’s deliver for all our people across these great islands – and build a future defined not by division, but by unity and hope.”

Despite their differences, the meeting between Mr Sunak and Ms Sturgeon at least represents a step forward in working together after Mr Sunak’s predecessor Liz Truss failed to make contact with Ms Sturgeon and said during the Tory leadership campaign that it was better to “ignore” the First Minister.

The summit will be attended by representatives from the UK Government, Irish Government, devolved governments and Crown dependencies.

Noting the absence of representation from Northern Ireland due to the collapse of the executive, the Prime Minister will also stress the important role of the British-Irish Council in finding resolutions.

He is expected to say: “The British-Irish Council is a vital east-west body under the Belfast (Good Friday) Agreement, an agreement that I am deeply committed to.

“We all want to see power sharing restored as soon as possible. I’m determined to deliver that.”

Ahead of the summit, the Prime Minister also held a bilateral meeting with the Taoiseach Micheál Martin.

Chancellor Jeremy Hunt joined the discussions virtually. Michael Gove, the Levelling Up Secretary, was also in attendance.

The British-Irish Council comprises of representatives from the UK Government; Irish Government; Scottish Government; Northern Ireland Executive; Welsh Government; Isle of Man Government; Government of Jersey and Government of Guernsey.

Established under the Belfast (Good Friday) agreement, the council’s aims are to promote positive relationships among the people of the islands. The Prime Minister will open the summit, hosted by the UK Government in the North West, and attend a dinner with representatives.