Swinney calls for corporation tax powers to boost Scots investment

FINANCE Secretary John Swinney today claimed Scotland could boost investment and grow the economy if control over corporation tax were transferred from Westminster to Holyrood.

He published a discussion paper setting out how the Scottish Government could vary the rate of the tax to attract new investment, cut tax bills for small businesses or offer tax breaks to companies that invest in research and development or green technology.

Excluding North Sea oil, corporation tax generated £2.6 billion in Scotland in 2009-10. Mr Swinney said control of the tax was a vital tool for increasing sustainable growth and would make Scotland more competitive.

The UK Government is already considering allowing Northern Ireland to set its own rate of corporation tax. It is claimed if the Northern Ireland assembly government were able to pre-announce a reduction in the corporation tax rate to 12.5 per cent, it would create 58,000 more jobs, increase living standards by 13.5 per cent and raise annual economic growth by one percentage point by 2030.