Business rate cuts better at creating jobs than corporation tax cuts

Rather than moan about the powers they don't have, the SNP should use the ones they do have to better effect, such as cutting business rates which has a proven record of success.

Speaking during the Scottish Government's debate on Corporation Tax, David McLetchie MSP, Scottish Conservative Chief Whip, said:

"Now we have heard a great deal about the proposition that according to the Scottish Government's model a three point reduction in corporation tax – that is three points below the planned UK rate of 23% for 2014/15 – would create 27,000 jobs after 20 years. The price is a reduction in corporation tax revenue in Scotland of between 200 and 250 million pounds per annum.

"And let's now look at an alternative approach to stimulating economic activity of which we have a concrete recent example in the form of the small business bonus scheme. What was the jobs impact of this measure?

"Well for an answer I turn to the authoritative source which is the Scottish National Party website which informed us on 28th February this year that the small business bonus scheme has delivered £450 million of support over the last four years reducing or removing business rates for 80,000 businesses and supporting businesses in taking on 40,000 new employees.

"Now £450 million over four years is roughly £110 million per annum from the Scottish budget. So there we have the contrast based on the SNP's own figures. A business rate reduction creates 40,000 real jobs in four years. A corporation tax reduction, which is twice as expensive, creates fewer jobs and takes five times longer.

"We should use the tax powers that we have to cut business rates across the board rather than moan about the tax powers we don't. If we did that we may get a pleasant surprise and Scotland may be substantially better off."

Please click on the link below for the SNP's press release highlighting how many jobs were created by the reduction in business rates – a process that was accelerated by Scottish Conservative votes in the last parliament.

http://www.snp.org/node/17750

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