THERE should be an independence referendum within the next two years, Nicola Sturgeon has said.

The First Minister set out the steps towards a second referendum at Holyrood including setting up a Citizens' Assembly.

Ms Sturgeon did not set a date or even a rough timescale of when it would take place or trigger a referendum campaign.

Instead she said the Scottish Government will begin the process of preparing legislation to hold a poll “in the lifetime of this parliament” which means it would have to take place before May 2021.

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With six months notice required, it cannot take place this year and with Holyrood elections due to take place in May 2021, it is likely any referendum would need to take place in 2020.

However, while Holyrood can legislate for a second referendum without the consent of the UK Government, it cannot hold a referendum without consent granted by it under a Section 30 order as in the 2014 vote.

Ms Sturgeon said she wanted to reach out across the political parties and the country to set out what kind of country they want Scotland to be in the future.

She said Mike Russell, the Brexit Secretary, would be seeking to hold talks with other party leaders to hear their ideas for Scotland’s future.

She said there would be a Citizens, Assembly set up from a “cross section of society” to inform “what kind of country are we trying to build”.

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Ms Sturgeon set the Scottish Government and Holyrood on a collision course with the UK Government of the power to hold a second referendum.

She said that Westminster cannot withhold the power, stating "No UK government is able to deny the will of the people or stop that will being expressed.”

She said that Brexit has taught a lesson that Scotland shouldn’t “rush into immediate decisions.

However she added: “We cannot wait indefinitely.”