SNP’s tax plans ‘harming our reputation as good place to do business’

Treasury Secretary Danny Alexander has launched a scathing attack on the Scottish Government’s tax plans, warning they are damaging the country’s reputation as a good place to do business.

In a speech to the Institute of Chartered Accountants of Scotland, he accused the SNP of creating uncertainty for the private sector.

The Liberal Democrat MP also said there were “a huge number of unanswered questions” surrounding the Scottish Government’s calls for control of corporation tax to be devolved.

Mr Alexander said the UK government would cut the tax to 26 per cent this year, and 23 per cent by 2014 to help businesses.

His criticism comes amid a row over business rates and an SNP plan to impose a “public health levy” for large retailers selling cigarettes and alcohol.

Mr Alexander said: “A potential referendum on independence is already causing real uncertainty for many firms. The perception of rising business rates makes matters worse.

“These two together are harming Scotland’s reputation as a good place to do business at a time when we need to be supporting the private sector.”

But a spokesman for finance secretary John Swinney hit back, saying: “Instead of damaging growth with the UK government’s misplaced economic policy, Mr Alexander should respect the votes of the people of Scotland and agree to transfer much-needed job-creating powers to the Scottish Parliament.”

Mr Alexander also announced a final public consultation on the issuing of Scottish bonds as part of the Scotland Bill. He added: “Whilst we are happy to discuss their request on corporation tax, there remain a huge number of unanswered questions, questions which we have put to the Scottish Government.”