Business chief says Scots can go it alone

A LEADING Scottish businessman has claimed the country’s economy would be boosted by fiscal autonomy.

Jim McColl, chief executive of the engineering group Clyde Blowers, said lower corporation tax would increase the number of indigenous businesses and attract inward investment to Scotland.

He said: "There are examples such as Ireland where, when you lower corporation tax, tax revenues actually go up, because more companies want to set up in the country.

"I am sure that would happen if we had more fiscal independence and a lower corporation tax in Scotland."

The Scottish Executive has rejected fiscal autonomy and ministers believe Scotland benefits from a level playing field with the rest of the UK.

But the SNP’s economy spokesman, Andrew Wilson, welcomed Mr McColl’s comments, which follow Kwik-Fit founder Sir Tom Farmer’s claim this month that independence was inevitable.

Mr Wilson said: "With Sir Tom Farmer and now the highly-respected Jim McColl backing the case for financial independence and an imaginative economic growth strategy, our case is building up a head of steam."

Mr McColl said an assessment would have to be made on whether lower corporation tax in Scotland would lead to an influx of companies from the south-east of England.

"You would have to have fiscal independence to do it, because the rest of the UK might suffer," he said.

The rate of corporation tax for companies with profits of more than £1.5 million is currently 30 per cent, while the small companies rate for profits between £50,000 and £300,000 is 20 per cent.

Mr McColl said a corporation tax rate of between 10 and 15 per cent should be considered, with 15 per cent being the absolute maximum.