Sir Alistair Grant: Fears a 'Tartan' tax

Business Voices Devolution Fears

Sir Alistair Grant, its chairman, repeated his fears that business could suffer if income tax was raised north of the border by 3p or business rates were increased.

At his company's annual general meeting he also defended his right to speak out, he said: "I persist in doing so because 40 years in business has convinced me that the economic performance of a country is the aggregate of the performance of its wealth creating sectors, whether they be businesses, professions or even higher education establishments."

Scottish and Newcastle breweries warn of the morning after

His remarks were an amplification of a passage in the brewery's annual report which warns that if a parliament were to use its tax powers, conditions could be created which might drain the Scottish economy.

The report fears it might inhibit the retention of top talent, bias investment decisions to other parts of the UK and make Scottish goods and services "significantly uncompetitive".

"I accept that 3p in the pound on income might seem a bearable price to pay for the oxygenating effect that new powers of self determination might have upon the people of Scotland," Sir Alistair told the meeting.

"But my fear is that this tax varying power and the other fiscal powers which the parliament might be granted could make it harder for us to do in Scotland everything that needs to be done to maintain the competitive edge which we need for international success," he added.

He said critics of his viewpoint had "quite vehemently" stated it was wrong to suppose a new parliament would do anything to harm Scotland's economic interests.

"I pray that it should be so. But at the same time I reflect upon the many, many occasions during the last 40 years when the fiscal policies of governments on both sides of the political divide seem to me to have inhibited wealth creation," he said.

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