A think-tank has called on David Cameron to add corporation tax to Tory plans for more powers at Holyrood.
Reform Scotland said the move would be “truly radical” on top of a proposal to extend full income tax powers to Edinburgh in the event of a No vote.
Mr Cameron has approved plans to hand Holyrood powers on income tax and to supplement benefits in a move that would effectively create a Scottish welfare state. However, Reform Scotland claimed the “missing link” in the Strathclyde Commission’s plan was the full devolution of corporation tax – a key demand made by the SNP government.
The call came after former Scottish Conservative leadership contender Murdo Fraser backed a “federal” UK that would see Holyrood handed equal status and sovereignty to Westminster – a policy that goes further than that set out by Strathclyde.
Reform Scotland’s chairman Ben Thomson repeated the group’s call for “devo plus” that would see Holyrood take charge of all taxes, with the exception of National Insurance and VAT.
“Corporation tax devolution would enable Holyrood to raise another 7 per cent of its own spending and be a significant step towards financial accountability for the Scottish Parliament. Setting corporation tax rates would be a game changer,” Mr Thomson said.
“We welcome the plans to devolve income tax in its entirety, but the plans could and should have gone further.”