Scottish Secretary David Mundell has sought to allay fears the Inverness City Deal could be caught up in the ongoing “row” over devolution finance.
The Tory frontbencher said the bid was “absolutely unrelated” to the talks over the fiscal framework that will underpin the Scotland Bill.
His intervention came after Sir Danny Alexander, former chief secretary to the Treasury, expressed concern the city deal could be getting entangled in that process.
He told the Press and Journal: “There does seem to be a great row about the finance model for devolution.
“I hope the Inverness City Deal isn’t stuck in all of that and getting caught up in what is a politically motivated row ahead of the Scottish elections.”
The UK and Scottish Governments are currently locked in negotiations over the financial arrangement accompanying the transfer of further powers to Holyrood.
This week Mr Mundell branded the SNP demands “ludicrous”, suggesting Scottish Finance Secretary John Swinney was “chancing his arm”.
But the Scottish secretary last night insisted the two processes were not linked, adding: “It’s absolutely unrelated to the fiscal framework. I’m absolutely committed just as I was with the Aberdeen deal.
“It’s well into the process and I’m confident of a positive outcome.”
He also hailed the “excellent” proposals put forward by Highland Council for hundreds of millions of pounds of investment.
Sir Danny told the P&J Mr Mundell had a “great responsibility” to make sure the cause is championed.
The ex-Liberal Democrat Cabinet minister said his “gut instinct” was that a deal would be secured.
But he added: “I hope that it is not one that is watered down or that doesn’t get the level of commitment that Inverness needs to really grow.
“A city deal is more necessary than it has ever been to help move the economy of Inverness on to the next stage.”
Mr Mundell said he was championing the Inverness deal, as he was other proposals coming forward from Edinburgh and other parts of Scotland.
Highland Council is bidding for a £300million agreement which civic chiefs hope would help pay for a proposed new regional sports centre, visitor attractions at Inverness Castle and cultural development, with a museum, library and gallery.
City deals aim to give new powers and freedoms to the UK’s cities, and were first launched by then-deputy prime minister Nick Clegg in December 2011.