Salmond supports lower corporation tax in Scotland

ALEX SALMOND feels lower corporation tax would be the “best available weapon” for an independent Scotland to be competitive, reports the Financial Times.

An independent Scotland would be unlikely to undercut the UK on income tax, but corporation tax would be 3% lower, potentially creating 27,000 jobs and generating further revenues, the Scottish first minister told the annual convention of the Institute of Directors in London.

Economists, though, are uncertain that Scotland can afford to take such measures while maintaining high public spending, particularly if it failed to retain a AAA rating on its borrowing.

Salmond, who has scheduled an independence referendum for October 2014, told the convention that independence for Scotland would create “substantial opportunities for businesses across these islands”.