SCOTLAND:PROPOSALS TO allow Northern Ireland have a lower corporation tax rate have become an election issue in Scotland following SNP finance secretary John Swinney's demand that Scotland be given similar rights.
“Scotland has the resources, and we should also have the job-creating economic and financial powers to match so that we can boost competitiveness and drive forward recovery,” Mr Swinney said.
Taxation orders from London have become controversial in Scotland since a £2 billion (€2.27 billion) windfall tax on oil companies operating in the North Sea was imposed in the budget.
“With record North Sea revenues of £13.4 billion this coming year, an increase of over £4 billion, and double last year’s figure, it is abundantly clear that Scottish resources are bankrolling the chancellor’s budget and the UK treasury,” said Mr Swinney.
“Even before this huge surge in North Sea revenues, the official government expenditure and revenue figures [for Scotland] showed the flow of resources in the UK is from north to south, not south to north.”
Under legislation before the House of Commons, the treasury would deduct 10p off income tax rates and allow the Scottish devolved parliament to decide whether or not to substitute local charges, but it would not give the right to vary corporation taxes.
Opposing a separate corporation tax rate, Scottish secretary Michael Moore said Northern Ireland was in a unique position because it has a land border with the Republic.
The Scottish business community is divided on the issue, with Edinburgh’s Chamber of Commerce saying it favoured lower rates and the Scottish branch of the Confederation of British Industry saying there should be a “level UK playing field”.
