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Alternative scenario

Brian Taylor | 12:38 UK time, Monday, 11 October 2010

And so we have another factor in the public spending story - with my disclosure this morning that the forthcoming Scottish budget document will feature an alternative scenario, based on full fiscal autonomy.

Finance Secretary John Swinney will set out his planned cuts - while noting and arguing, en passant, that he could have been announcing a programme for potential growth, had he the full panoply of fiscal and financial powers at his disposal.

John Swinney's opponents will undoubtedly cry foul.

They will argue that the finance secretary should not be diverting any attention or time to calculations predicated upon a set-up which does not presently exist.

In response, Mr Swinney will say that he will found this section of his document upon existing work by economists Drew Scott and Andrew Hughes Hallett on the subject.

In short, he will argue that this is not a dilatory exercise, avoiding the real task in hand, but a legitimate contribution to the wider debate on Scotland's future.

The Swinney budget document will, of course, follow the Comprehensive Spending Review, to be published by the Chancellor next week.

Mr Swinney has indicated that, within a month, he will assess the consequentials for Holyrood spending and will publish detailed calculations as to how Scotland will cope.

Then will follow negotations with other parties in an effort to steer the package through the Scottish Parliament.

Always difficult, there will be an added edge this time around: the small matter of elections in May.

PS: Watch this online site for the most comprehensive coverage of the public spending issue. Watch ³ÉÈË¿ìÊÖ Scotland on the telly and listen to the wireless too. Is that a plug? Yep.

PPS: And here's another. ³ÉÈË¿ìÊÖ Scotland will feature spending debates all this week - and my Big Debate from Perth on Friday will also focus on this topic. Want to be in the audience? Email: brian@bbc.co.uk

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