Tax Debate Continues

Charles Kennedy and Jim Wallace campaign

Supporters of devolution say that the business community have nothing to fear but the No,No campaign argue that a parliament with tax powers would hammer small companies and drive major investors out of Scotland.

The Liberal Democrat MP, Charles Kennedy, campaigning in Inverness today was sceptical of the arguments of the Scottish business community, stating "These are the self same captains of commerce who come to MPs when there is a hostile takeover bid, from south of the border, or indeed abroad and throw up their hands in horror and say we must maintain the integrity and independence of a Scottish business base."

Mowbray: Higher tax - lower profits

The Think Twice campaigner Richard Mowbray stated that a Scottish parliament would adversely affect Scottish businesses. "A Higher income tax will undoubtedly trigger wage claims as people try to offset the impact of such a tax. Higher wage claims mean higher costs for businesses. Higher costs could well mean, either lower profits affecting investment or higher prices for goods," he said at a press conference in Glasgow today. This would unfairly discriminate against 250,000 small businesses, he believes.

The SNP, at a press conference in Inverness, wheeled out Dennis MacLeod, a Scottish businessman who controls a mullti-million pound mining group and believes that Scottish businesses have nothing to fear from a parliament with tax-varying powers. "The quantity of tax we are talking about in terms of the tax bill for the whole of Scotland is simply a few per cent, so this really cannot be considered to be a serious matter and it is really a political matter and a red herring," he said.