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proposed large retailer levy put the government's "judgment into doubt".

He said: "Ben would like a zero rate (of corporation tax], but is that likely? The very political party that has called for these fiscal powers so they could mimic Ireland has just put the business rate up.

"Why hasn't Ben called for the end of the business rate? That is something the Scottish Government could do."

Thomson argued that as firms globalise, the corporation tax will be "harder to collect". "You might as well face up to the fact and get ahead of the curve and have a lower corporation tax than everyone else - even having no corporation tax."

He added: "Why are people so afraid of public sector competition? In all other walks of life you are glad there is more than one supermarket chain, you have a choice and they compete with each other to drive prices down. Why shouldn't we have different regions of the UK having different tax systems?"

In an exchange of correspondence at Christmas, Thomson accused McMillan of running a "one-man political crusade" against debate on the topic, while McMillan accused Thomson of being "obsessed" with fiscal autonomy.

Thomson claims the bad blood between the two is such that the CBI has since cancelled an event to be held jointly with Reform Scotland.

McMillan insisted he admires Thomson but disagrees fundamentally with his views. "I know Ben and I like him, and I have no issue around Ben personally.

"He is a very successful businessman and a bright guy, but that doesn't make him right that Scotland's economy would improve as a result of the country being given greater fiscal powers.

"I'm not interested in taking forward any debates about fiscal autonomy with Ben Thomson or anyone else because it isn't going to happen.

He added: "The only realistic prospect for this year and for some time to come is Calman (the commission that led to the Scotland Bill]. And frankly I have more important things to do."

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