Alex Salmond sets out ‘absolutely clear’ case for enhanced powers during London visit

Scotland will only be free to take the “critical” measures needed to boost growth and create a “fairer society” when Edinburgh gains control of the key levers of economic power, he will say in an address to the London School of Economics.

The First Minister said in Liverpool on Monday that the English regions could thrive if Scotland splits from the UK.

Tonight, he will identify six key areas an independent Scottish administration needs to control to boost growth. These include taxation, energy and borrowing powers to stimulate capital investment.

“The economic case for Scottish independence is absolutely clear,” he will say. “The critical measures that need to be taken to boost the economy, create jobs and build a fairer society can only be taken when we have full financial control resting in Edinburgh rather than at Westminster.

“Full responsibility for fiscal policy while remaining within a common sterling currency area will give Scotland the maximum degree of flexibility and control of the key financial levers we need.”

The speech is the third in a series of lectures Mr Salmond has delivered south of the Border within the last month.

The SNP leader will also step up calls for control over corporation tax, which he wants to see included in the Scotland Bill. Mr Salmond wants to lower this in Scotland in an effort to attract more big firms.

“With responsibility for taxation, including corporation tax, we will be able to target support to specific areas and industries, such as our vast energy sector or the computer games industry, where Scotland has a real edge on international competitors in terms of cutting-edge innovation,” he will say.

And air passenger duty, which the Calman Commission examining the devolution settlement said should be handed to Scotland, will also be set out as a key demand by the SNP leader tonight. He will say this could help “encourage direct air links” with the rest of the world and stimulate tourism.

While the Scottish Government is already using capital investment to stimulate growth, Mr Salmond will say Holyrood needs more clout in this area. “Our powers are extremely limited and right now we have no borrowing powers whatsoever – with the same borrowing powers as other nations we would help stimulate further economic growth in Scotland,” he will say.

Holyrood is set to get more than £2 billion of borrowing powers under the Scotland Bill, but the SNP says it should be double this. The First Minister will add: “Scotland is not immune from current global economic challenges. But once we are equipped with the same powers that independent countries around the world take for granted we will be very well placed to thrive economically in the years to come.”