DOWNING Street rejected a suggestion that the creation of a new Cabinet committee on the Union led by the Prime Minister was a sign of “confusion and panic”.

It emerged last night that the Union Unit, following the loss of two leaders in the space of a few weeks, would no longer “play a key role” in government strategy.

To replace the unit, a new Cabinet committee will be created. The Cabinet Union Strategy Committee will be chaired by Boris Johnson and include Rishi Sunak, Michael Gove, David Frost and the secretaries of state for Scotland, Northern Ireland and Wales.

READ MORE: Boris Johnson's Union Unit to be replaced with new Cabinet Committee

The SNP said the change showed the Tories are in disarray, adding “no amount of rebranding” can change that.

The Prime Minister’s official spokesman said: “No, I think it demonstrates our commitment to the Union and the focus the PM has on ensuring that we deliver for all countries of the United Kingdom.”

The spokesman said that Number 10 officials would continue to work in the Union unit, but the new Union strategy committee would build on existing structures.

“We have the Union policy implementation committee also which is chaired by CDL (Chancellor of the Duchy of Lancaster Michael Gove) which will also meet more regularly,” the spokesman told reporters.

“The Union policy implementation committee is chaired by CDL and that will have officials and other ministers attending as required, they will obviously implement the policy that’s decided at the PM-led Union strategy committee.

“That will include, amongst others, the PM, CDL, the Chancellor, Secretary of State for Wales, Secretary of State for Northern Ireland, Secretary of State for Scotland and Lord Frost.”

READ MORE: Alister Jack insists 'nothing's gone wrong' with Union Unit despite 'disarray'

Earlier today Scottish Secretary Alister Jack insisted there were no problems in the Union Unit.

Speaking to Good Morning Scotland, he insisted the downgrading of the team was “very good news”.

He went on: “This is a step up. Advisers advise and ministers decide. This is a ministerial Cabinet committee which the Prime Minister and the Chancellor of the Exchequer will be sitting on, along with the Secretaries of State for Northern Ireland, Wales, and Scotland.”

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Asked how Westminster planned to strengthen the Union beyond “throwing money at it”, Jack cited the extra funding Scotland received from the Treasury to fight Covid, as well as testing facilities and the vaccination programme.

The top Tory also cited the Levelling Up Fund, which was yesterday branded a “naked power grab” after it became clear that Westminster would use it to spend in devolved areas, rather than pass Barnett consequentials to Holyrood.