Norman Springford says business leaders 'sceptical' about Holyrood fiscal powers

ONE of Scotland's most prolific entrepreneurs has warned that there is "scepticism" among business owners over the Scottish Government's bid to wrestle control of corporation tax from Westminster.

Norman Springford, the founder of the Apex chain of hotels and a former director of Partick Thistle Football Club, has raised concerns that the burden on businesses would most likely increase if greater fiscal powers were secured by Holyrood.

The Edinburgh businessman, who has an estimated wealth of 114 million and who owned a string of pubs before moving into the hotel trade, said he did not believe devolution of corporation tax was in Scotland's interests. "The suspicion is that the SNP would increase tax rather reduce tax and I have no faith in their ability to be able to manage corporation tax, for example, if that also became part of the Scotland Bill process.

"(The argument that] we'll reduce tax and create growth - I could not see that happening," he said. "You have to balance the books from somewhere. You have got to get the funding from somewhere to meet the services that are provided."

Although a number of business leaders, who usually steer clear of politics, broke silence on greater fiscal autonomy at the start of the year, Scotland's business community has been reluctant to comment on issues such as corporation tax since the SNP's election victory.

In his New Year address, CBI Scotland leader Iain McMillan warned that greater fiscal powers for Scotland would "fragment" the UK system and could possibly end in higher costs for Scottish businesses.

Jim McColl of engineering firm Clyde Blowers accused McMillan of being out of touch with the CBI's members.

Although many in the private sector are reluctant to get involved in the fiscal autonomy debate, there is a growing recognition among business leaders that they will have to engage as the SNP majority government forges ahead with its independence agenda.

Springford, who was an accountant until 1991, said it would be bad for Scottish firms if there is an apparent anti-English bias in Scotland. "From a hotel point of view it seems ludicrous that we continually bash the English," he said. "That's 78 per cent of our market."

Apex has seven hotels in the UK and will next year open an eighth at London's Inns of Court after striking a landmark deal with the ancient law society, the Honourable Society of the Inner Temple.

Apex Hotels saw pre-tax profits soar 163 per cent to 7.1 million in the year to April.