Bill Jamieson: A battle of visions breaks out between governments

ECONOMIC growth and job creation will be the key priorities for the SNP government, Alex Salmond said yesterday, as he unveiled the Programme for Government with a headline pledge to guarantee all school-leavers in Scotland some kind of education or training.

And it is economic growth and job creation which looks set to play a decisive factor in the wider constitutional battle which provided the programme’s sub-text.

Legislation confirmed yesterday such as police and fire brigade reform, alcohol pricing and anti-sectarianism, will keep MSPs busy over the coming months, but Mr Salmond used a large chunk of his speech to parliament to set out the dividing lines between him and the UK government on the crucial issue of the economy.

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His central argument was that the speed and scale of George Osborne’s deficit reduction plan would choke off growth. It is “voodoo economics”, he warned, lashing back at Scottish ministers in the UK government whose “lectures” on his handling of the Scottish Government he would be ignoring.

Instead, Mr Salmond quoted from a triumvirate of international economists who, he argued, were all calling for government to loosen the purse strings, allowing more spending on public works. This is what he wants to do in Scotland, he said, but cannot while the Treasury holds the purse strings.

Both Chancellor Osborne and Chief Secretary to the Treasury Danny Alexander have repeated in recent days that the UK government is not for turning on their plans. This, they argue, will help keep down rates of borrowing, depress interest rates for families, and turn the UK into a “safe haven” amid the global turmoil.

Both sides have therefore nailed their colours and their reputations to the mast.

This has now become a battle of visions between London and Edinburgh on how to bring the country out of the economic mire.

And the stakes are high: whoever has the right answer can expect to be rewarded if and when the independence referendum comes about.

As was expected, Mr Salmond’s opponents were particularly curious about that referendum yesterday - for which legislation was conspicuous by its absence.

Mr Salmond has said he doesn’t intend to bring it forward until near the end of this parliament.

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And so rather than laying out details and a timetable on preparations for the referendum, he simply re-stated his argument that the SNP’s landslide victory in May had proven that people want Holyrood “to have the control, flexibility and freedom” and were ready “to move on to the next chapter of Scotland’s story”.

Quite what will be in that chapter, however, he declined to reveal.

That lack of clarity is proving to be rich territory for the SNP’s opponents - and yesterday Labour’s Iain Gray and the Conservative’s Annabel Goldie both had fun taunting the SNP benches for the failure to bring it on - with both proving once again that imminent retirement always seems to lead to good performance.

Their attacks showed that Mr Salmond could find it increasingly uncomfortable to defend his Whenever-endum policy.

They also showed up the battle for the ‘narrative’.

The SNP wants to focus on the economy and its immediate legislative plans, as it builds slowly to that referendum.

Their opponents want to focus on the referendum now.

Winning that particular tug of war will be key over the coming months.