NICOLA Sturgeon has defended her plan to hold an independence vote amid the cost-of-living crisis and use the general election as a ‘de facto’ referendum as a last resort.

The First Minister doubled down in her keynote speech to the SNP conference in Aberdeen, saying she would not “never - ever - give up on Scottish democracy”.

She also tried to close down speculation about her future by telling her party she intended to be First Minister “for quite some time yet”.

Delegates responded to the remark with rapturous applause and a standing ovation.

Ms Sturgeon was also more candid than her predecessor Alex Salmond about the difficulty and delay that the transition to an independent country would involve.

She said it was “not a panacea” and “making it work will, of course, take time, hard work and good judgment.There will be many challenges along the way.”

She also said that Scotland would not be able to emulate the success of the other small nations she has held up as role models “overnight”.

The more realistic tone was a signal to her party that next week's 150-page paper on the economy and currency of an independent Scotland will contain some "tough messages", Government sources said.

The UK Supreme Court will tomorrow start hearing arguments on whether Holyrood could stage Indyref2 under its existing powers, without Westminster’s consent.

Ms Sturgeon has said that if the case goes against her, she will use the next general election as a de facto referendum on the “single question” of independence.

Her opponents have criticised her for planning a referendum in October 2023 if the Court allows it given the turbulent economic backdrop, while many of her own supporters are uncvonvinced that a de facto referendum would succeed.

Addressing a packed auditorium, she said: “Over the next two days the Supreme Court will consider whether the current law allows the Scottish Parliament to legislate for an advisory referendum.

“If Westminster had any respect at all for Scottish democracy, this court hearing wouldn’t be necessary. But Westminster has no such respect.

“That means this issue was always destined to end up in court, sooner or later. Better, in my view, that it is sooner.

“If the Court decides in the way we hope it does, on 19 October next year, there will be an independence referendum. And if the court doesn’t decide that way?

“First, and obviously, we will respect that judgment. We believe in the rule of law.

“And as a party - and a movement - we will, of course, reflect.

“But fundamentally, it will leave us with a very simple choice. Put our case for independence to the people in an election…Or give up on Scottish democracy.

“I will never - ever - give up on Scottish democracy.”

She added: “For now, the question of process - the ‘how’ of securing independence - is in the hands of judges. It is for us to crack on with answering the question ‘why’.”

She said one reason would be protecting the NHS, which although devolved would be affected by any structural and funding changes to the health service south of the border.

Ms Sturgeon said: "If - as some Tories are now openly arguing - they move away from the very basis on which it was founded and towards an insurance based alternative, that will destroy our NHS.

"With independence that will never happen. We will protect its founding principles.

"With independence we could choose to embed a universal NHS in a written constitution - constitutional right to health care free at the point of need."

Ms Sturgeon announced that quarterly bridging payments for those eligible for free school meals will double from £130 to £260 in December.

She also confirmed that the next two rapid cancer diagnostic services will be established in Lanarkshire and the Borders next year.

She said an independent Scotland would create a £20billion fund to invest in the transition to a net zero carbon economy by using money from oil and borrowing.

She said the Scottish Government would set out the economic case for independence in the third part of its Building a New Scotland prospectus a week today.

She said it would show business how it could be helped by independence and create an economy without losers, “an economy that works for everyone”.

She said: “In short, we will show how we can break with the low productivity, high inequality Brexit-based UK economy. And use the full powers of independence to build an inclusive, fair, wellbeing economy that works for everyone.”

She went on: “Our approach to borrowing with the new powers of independence will be responsible and for a purpose.

“Let me give one example of that - a central proposal in the paper we will publish next week.

“We propose to invest remaining oil revenues and use our borrowing powers, not to cut tax for the richest, but to set up an independence investment fund.

“The Building a New Scotland Fund will deliver up to £20 billion of investment in the first decade of independence. In practical terms a fund like this could support a massive programme to decarbonise housing, cut fuel bills and reduce fuel poverty.

“It could finance the building of thousands more affordable homes. Invest in local renewable energy projects, helping communities own assets and wield more influence over their use.

“It will help the transition to Net Zero. Build resilient communities. And kick-start the sustainable economic growth so important for our newly independent nation.

“Combining Scotland’s abundant resources with the powers of independence to benefit this and future generations. Conference, that is what independence is all about.”

The White Paper issued before the 2014 referendum also proposed a “long-term savings fund” to invest a proportion of the wealth from oil and gas production.

While the SNP’s Sustainable Growth Commission of 2018 also proposed a Fund for Future Generations drawing on all North Sea Revenues and one-off revenue raisers.

The First Minister told delegates 22 projects across the North East will receive a share of more than £50m to accelerate the energy transition and secure future jobs in the region.

Scottish Tory Leader Douglas Ross said: “Ordinary Scots watching Nicola Sturgeon’s narrow, independence-obsessed speech will have been dismayed at her skewed priorities.

“This was red meat for the SNP faithful but it didn’t even have the pretence of being the speech of a First Minister of Scotland.

“It beggars belief that in the midst of a global cost-of-living crisis – which ought to be her top priority – Nicola Sturgeon devoted so much of her speech to the push for another divisive referendum that most Scots don’t want.

“She has taken her eye off the ball again and proved that the SNP will never put the people’s priorities first. Their own, self-serving, constitutional obsession always takes priority over everything.”

Scottish Labour Deputy Leader Jackie Baillie MSP said: ""She had the chance to set out a vision to use the power already in her hands to deal with the problems facing Scotland, instead she doubled down on the politics of division.

"But it isn't another divisive referendum that will get Scotland back on track, it’s politicians focused on dealing with what actually matters.

"No amount of spin can hide the SNP’s disastrous governance of this country – or its dangerous stewardship of the NHS."

Scottish Liberal Democrat leader Alex Cole-Hamilton said: “The First Minister’s speech should have started with an apology to the 740,000 Scots now stuck on NHS waiting lists. This speech was Nicola Sturgeon’s Groundhog Day address.  

“Independence got more than 50 mentions, education didn’t get one. Just like there was nothing on ferries, long Covid or mental health. The SNP fixation on breaking up the UK is taking people for granted.

“The next election will be a chance to change our country’s future and move on from the divisions of the past, starting with ditching the twin nationalisms of the SNP and Conservatives.”

Pamela Nash, chief executive of Scotland in Union, said: “Nicola Sturgeon said she won’t give up on Scottish democracy – but she did exactly that in 2014 and has been doing so ever since.

“Had the SNP respected the result of the decisive referendum vote, Scotland could have moved on and focused on the things that really matter.

“Instead, the First Minister has spent a huge chunk of her keynote conference speech agitating again for the break-up of the United Kingdom, dragging us back into a toxic and divisive debate. It’s time for the SNP to listen to Scotland.

“Scotland is the UK, and our positive future is very much together.

“If this SNP conference has taught us anything, it’s that from the very top the nationalists’ campaign for separation is as aggressive and incoherent as ever.”