(Image: Jeff Mitchell)
Andy Burnham has urged politicians to "move beyond the constitutional question" but the Prime Minister sparked confusion over his comments on a second vote on Scottish independence.
When asked explicitly if he would rule out a new vote on independence for the duration of his premiership, the Prime Minister declined to do so.
The SNP's Stephen Flynn described it as a "significant moment".
However, Downing Street sources then told the Telegraph that Mr Burnham had, in fact, ruled out the vote for as long as he was in No 10.
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The Prime Minister was speaking to an audience of supporters, business people and apprentices at New College Lanarkshire in Motherwell.
In his speech, he invited the SNP government to work with his administration on "deeper devolution" for Scotland.
Prime Minister Andy Burnham delivers a speech focusing on the forming of closer ties with the Scottish government in Motherwell. (Image: Jeff Mitchell)
"I want to make a serious and genuine offer to the Scottish Government. I want to move on from the old politics of conflict," he said.
The Prime Minister offered to devolve DWP powers on localised employment support to the Scottish Government.
He said this would be similar to the English model but shaped by ministers in Edinburgh, with colleges and employers able to have more control over funding for apprenticeships.
Mr Burnham described Scotland as "one of the most centralised nations in Europe".
"And I don't say that to score points. I say that because I believe we need to be honest about that if we really want to get growth in every postcode."
He said devolution "was never supposed to stop at the doors of the Scottish Parliament".
Mr Burnham said: "It was always meant to be the start of something deeper, the foundations of a nation where communities had more of a say in their own future, and where the norm was always to push power out until it reached every person and every postcode."
The Labour leader said the English experience showed it made sense to pair employment support with transport and housing powers, but insisted he would not impose the English mayoral model, saying it was "for Scotland to decide the model of deeper devolution, not me".
The Prime Minister added: "We won't agree on everything, and we're not going to, and we shouldn't try because there are some things we will disagree on. But that does not mean, just because you can't agree on everything, it doesn't mean you can't agree on anything."
Asked whether devolving power more locally would make independence more or less likely, Mr Burnham said: "I just feel we all have to move beyond the constitutional questions. In my view, people in Scotland are suffering from the cost of living crisis, like they are in England and everywhere else, and I think our job is to focus on the practicalities, to focus on solutions for people right now."
"Too much time is wasted on those dramas. It consumes too much energy. Get into the things that can make a difference in people's lives now. Get doing the things that can take young people off benefits and give them an opportunity now and do it. Do things to help people with the cost of living now. Putting buses under public control in Glasgow or elsewhere. We can do it now."
Asked explicitly if he was categorically ruling out a second referendum on independence during the duration of his premiership, the Prime Minister said: "I am somebody who believes that unions, trade unions, definitely, and I think unions of countries are better because you face a challenging world in a more confident and stronger way, in my view, where you collaborate and you work together."
Mr Burnham said he had made that clear to Mr Swinney. "He has a different view. But let's accept there's a different view there, and then work on what we can work on together, what we can agree on."
Asked about the Jackdaw and Rosebank oil and gas decisions, Mr Burnham said they would "come shortly" and that the government was "not backing away from them".
He said he had met Mr Swinney in the summer and the pair would meet soon with the leaders of the other devolved nations at the National Economic Council.
He said that a deal with the Scottish Government, plus a good agreement on food and farming at the UK-EU summit on November 20, would leave Scotland set up for more growth in 2027 than it has had in recent years.
The Herald asked Mr Burnham whether Glasgow and Edinburgh could expect a single funding settlement like Greater Manchester's, given council leaders' complaints that integrated settlements and capital funding for English mayors have not generated Barnett consequentials.
He did not commit to either, saying he wanted to make "the same support available, the same powers available" to Scotland's city regions, but that it was a matter for the National Economic Council.
On Glasgow's struggle with refugee homelessness costs, where refugee households make up 44% of homelessness applications, he said strong regional arrangements would allow "those conversations with the Home Office", and that he would "stand ready" to have them.
Prime Minister Andy Burnham delivers a speech focusing on the forming of closer ties with the Scottish government in Motherwell. (Image: Jeff Mitchell)
Speaking to reporters in Aberdeen at the SNP conference, Mr Flynn said: "What I just listened to was the Prime Minister of the United Kingdom be asked whether he would rule out an independence referendum. And he declined to do so.
"And I firmly believe he declined to do so because he's a reasonable man who recognises that his own hypocrisy, if he was to continue along the lines of saying that there can and should be a debate about a second referendum on membership of the European Union while seeking to deny one to the Scottish people in respect of our future.
"So he has again today outlined that he is not opposed to that second independence referendum, very much building upon what he of course said in the House of Commons. And I think this is a very significant moment in Scotland's constitutional journey."
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Responding to the speech, Scottish Conservative leader Russell Findlay said: "On his rare visit to Scotland, Andy Burnham should have been giving the green light to new drilling.
"But instead he was droning on about abstract political structures and procedures.
"Burnham has again opened the door for John Swinney to demand another divisive referendum.
"All of this is a massive distraction which won't create a single job, apart from more jobs for the boys.
"While they were indulging themselves, Kemi and I were visiting a fantastic family business in the west of Scotland to hear about the many challenges they face."