Letter: Borrower beware
Two things would result from devolving corporation tax if a lower rate was introduced in Scotland. Firstly, it would encourage more companies to incorporate in Scotland, and secondly, if the rate was lower than the income tax rate, it would encourage more of the self-employed to incorporate and pay some of their tax as corporation tax.
Both of these would have an affect on the UK Treasury, mainly in losing it money. Consequently, it is hardly surprising that a Hertfordshire MP like Mr Gauke is not totally enthusiastic.
It also means that we must treat any figures generated at Westminster with suspicion. Apart from vested interests trying to make the figures slanted towards the unionist case, the Treasury from 2001 till 2010 managed to bankrupt the country under Gordon Brown's leadership.
At no time did Treasury officials point out that the country was over-borrowing. Depending on their figures would be foolish. As for balancing payments to make up for the Treasury loss "under European law" (the last excuse of any government minister), if Scotland was fully independent there would be no need for these payments.
The Exchequer Secretary to the Treasury has just made another case for independence rather than devolution.
Bruce D Skivington
Gairloch, Wester Ross