What do you think?

to Number 11, Downing Street.

By the UK Government’s logic, Britain has already set off on a race to the bottom and Scotland is getting dragged along in the UK’s slipstream.

The SNP argument is that Scotland always gets pulled in whatever direction London goes and that’s not always best.

For example, Scotland suffers from low productivity and fewer companies start up relative to the rest of the UK.

That could be because Scots are lazy and lacking in initiative – but the long list of Scottish inventions and businesses that drove the industrial revolution rather undermine that theory.

Compared with other small EU countries Scotland has, according to the Scottish Government’s Fiscal Commission, “underperformed”.

It’s worth pointing out it would most likely fare even worse in comparison with the same countries if Scotland found itself outside the EU even for a short time, and for now there remains uncertainty about how and when Ireland has one of the lowest Scotland would get into Europe. corporation tax rates in the world

All of this suggests the problem at just 12.5%. is indeed that there’s a need for Huge multinationals l i ke more tailored solutions to the Google and Apple have estabnation’s economic problems. lished bases in Ireland along with

However, a recent report by a raft of less well-known but highDurham University expert Dr John value pharmaceutical and tech Moffat queried whether slashing companies, all benefiting from a corporation tax was a “panacea for reduced tax bill and creating closing the productivity gap thousands of jobs. through encouraging If it has worked in more inward investIreland – and on balment and/or business ance it has – why not start-ups”. Scotland?

As well as ecoWe l l , Scottish nomic criticisms Join the debate at the cities like Glasgow there have been Independence on Trial and Edinburgh political ones too. section of our website: would find them

Cutting corporawww.sundaypost. selves competing tion tax can be com with Dublin to woo the portrayed as a sop to fat multinationals. cats. The Irish have already

Green Party leader Patrick stolen a march and Dublin has a Harvie expressed doubts about reputation as a trendy and techy the policy and the trades union centre – though the Scots would body the STUC dubbed it “misbe able to match the Irish in playguided, damaging and wrong”. ing the ancestry card to appeal to

To counter these criticisms the American firms at least. SNP have a shining example of And if there was a lower corpohow the policy could work out. ration tax rate UK firms might also start thinking about headquartering their operations north of the Border to benefit.

That would lead to all sorts of creative accounting as the tax authorities try to work out which bit of money was made where and therefore what rate of duty should be applied.

If London lost out because companies were up to jiggery pokery with their tax affairs it would at best sour relations and at worst Westminster might be inclined to object to the EU entry.

Other EU countries would not be keen on new and stiff competition either.

On the other hand, the policy might not work.

Firms weighing up where to move might prefer the markets, infrastructure and attractions offered by south-east England.

Those for whom low tax rates are a priority might still plump for Ireland.

Like so much about the referendum the corporation tax conundrum is unprecedented and therefore the outcome unknown.