SCOTLAND looks set to have a new national digital channel after BBC plans received cautious backing by broadcasting watchdog Ofcom.

Ofcom has given a provisional green light to to the corporation's plans for a BBC Scotland channel which will broadcast a nightly news bulletin.

The decision, however, is not final, and a further consultation with the screen industry and the public will take place before a final decision will be made on 11 July.

Last night, commercial rival STV said it will make its views known on the channel and added that "it is essential that any developments are designed appropriately, delivering additional public value as well as enhanced services and choice for Scottish audiences."

The BBC said it will now step up its plans for the service, which will have a budget of £32m a year.

It has already commissioned new programmes for the channel, and begun to hire around 80 staff.

In a new report, Ofcom said that the new service "will deliver public value for audience" and "make a valuable contribution to the BBC's public purposes" as well as broadening the news options available to Scottish viewers.

It found that the proposal is "unlikely to have a substantial crowding out effect on competition."

The estimated amount of viewers for the channel, which will be broadcast in HD, would only be a fraction of those for other major channels, roughly double that of BBC Four's current audience.

The Ofcom report reveals that although the BBC is hiring 80 journalists for the new channel, only a proportion are news gatherers, and its online service will not be radically bigger and concluded "there is unlikely to be a significant adverse effect on competition."

It will broadcast between noon and midnight daily, with an hour long evening bulletin starting at 9pm.

The BBC said it will "feature international, UK and national stories, told from a Scottish perspective."

Around 50% of the programmes shown will be repeats, with the rest being first runs of new shows and acquisitions.

It will feature a mix of "documentaries, specialist factual, lifestyle, music, quiz and factual entertainment programming”.

Steve Carson, multi-platform commissioning head at BBC Scotland, said: "This is very welcome news as we continue to develop our proposals.

"Careful planning has been under way over the past year and we can now build on that following today’s announcement.

He added: ‘We’re planning a channel for modern Scotland, a home for compelling, quality content that appeals to and reflects the diversity of Scottish audiences.

"It will enable viewers in Scotland to see more of their lives, stories and interests on screen as well as offering the chance to watch great content from elsewhere."

He added: "A lot of exciting programme ideas have already been pitched to us from across the creative sector in Scotland.

"We’ve already ‘green lit’ some projects and are piloting others."

Ofcom noted that the new BBC Scotland channel would end separate programming for Scotland on BBC Two and BBC Four would move to a "less prominent slot" on digital channels in Scotland.

The Ofcom decision was welcomed by politicians.

Claire Baker, the culture spokeswoman for Scottish Labour, said: "As the plans progress the BBC must continue to ensure that licence fee payers are getting the best value for their money and that wider sector in Scotland can benefit from the new opportunities this new channel will bring."

Ross Greer, culture spokesman for the Scottish Green, said: "While it's great that the new channel has been given the green light, the BBC needs to properly invest in Scottish-based commissioning and production to make it a success."