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Public services left to bear the brunt of SNP's reckless corporation tax policy - Rennie

July 8, 2011 11:46 AM
Originally published by Scottish Liberal Democrats

Some of the wealthiest companies in Scotland are set to receive a huge tax windfall at the expense of hard pressed Scots, hospitals and schools under plans by the SNP to separate Scotland from the rest of the UK and slash Corporation Taxes.

Companies like Lloyds Banking Group and Stagecoach would receive millions of pounds cash back while public services would be hit by the £2.6 billion hole in Scotland's finances.

The UK Government is already cutting Corporation Tax to lowest level in the G7 to make the UK economy competitive but the SNP now wants to slash recklessly to Irish levels leaving a gaping hole in Scotland's finances.

Scottish Liberal Democrat Leader Willie Rennie MSP has urged the SNP Government to justify this regressive and unfair tax giveaway to these multi-million pound businesses and has asked the SNP to come clean on what public spending they will have to cut to pay for this.

Commenting Willie Rennie MSP said:

"While families are struggling to make ends meet, the SNP want to reward some of the most profitable companies in Scotland with a huge tax windfall as a result of their Corporation Tax policy.

"Scotland's hospitals, schools and hard pressed families will be left to bear the brunt of the SNP's reckless corporation tax policy as the SNP irresponsibly blows a £2.6 billion hole in Scotland's finances starting in the first year.

"£2.6 billion is a huge amount of money to lose from the public purse, more than the cost of running every health centre and hospital, every doctor and nurse in west central Scotland.

"Compared to smaller companies, Stagecoach, banks and financial investment companies look set to gain almost exponential amounts of cash back.

"Cutting Corporation Tax to Irish levels would result in a massive loss in income from businesses already based here - every year. That would have to be paid for by increasing other taxes or cutting services which are already under pressure.

"The public will find it extremely difficult to understand why it is a top priority for the SNP to line the gold-plated pockets of their party donors like Stagecoach boss Brian Souter.

"The SNP claim to be Scotland's party but their reckless demands could put Scotland at risk all in order to achieve their obsession of separating Scotland from the rest of the UK.

"Such extreme competition would be a risky game for Scotland to play and would come at a high price for Scots, the people that the SNP are supposed to serve."