SNP outlines four-option package for businesses

The Scottish Nationalist Party is about to release details of its plans to cut corporate taxation in a bid to boost Scotland’s business and financial sector under independence. In a consultation document to be released in the next few days, the SNP will canvass four options for consideration.

Party leader Alex Salmond believes that cutting corporate taxation intelligently could boost not just industry and investment in Scotland generally but consolidate Edinburgh’s position as one of Europe’s leading business centres.

The document – being sent to all leading businesses, finance houses, and accountancy firms – will set out four possible ways of achieving this end.

The first – personally favoured by Salmond – would involve cutting corporation tax to 10p in the pound for certain specified business purposes.

This has been a success in the Republic of Ireland where a new financial centre in Dublin has been built up from scratch in the last five years using the 10p rate.

Similarly, the low rate targeted in hi-tech and research and development-based inward investment has proved a magnet for the European HQs of US software firms.

A second option is reintroducing capital allowances on selected types of capital investment.

A third is reducing employers’ National Insurance Contributions up to a set level for smaller firms or those undertaking research, development and skills training.

The fourth option would be cutting business rates.