Cut taxes in Scotland to attract 'next Google', says Humza Yousaf

Sir Tom said it was too early to judge the performance of the First Minister. Photo: Andrew Milligan/PA

One of Scotland's richest men urged Humza Yusuf to copy Ireland's low tax system to encourage growth north of the English border.

Sir Tom Hunter urged Scotland to make Scotland a corporate tax area at a rate of 15% for high-growth sectors such as renewable energy, life sciences and artificial intelligence.

He said: «We need to determine where the next growth sectors will be so that we can get the next Apple and the next Google in Scotland.»

Sir Tom, who sold his retail business in the late 1990s sports goods for £290m, said sector-specific tax cuts were the right approach.

He added: “Corporate tax is one piece of the puzzle. These companies can go anywhere, which is why we need to provide them with a low tax regime, a highly skilled and motivated workforce, and appropriate regulation. Ireland did it all.»

Sir Tom sold his sporting goods business for £290m in late 1990- x years. Photo: David Cheskin/PA

The entrepreneur and philanthropist presented recommendations in a new report commissioned by Oxford Economics for his foundation.

Sir Tom stated that he was «apolitical» and criticized the SNP. He said: “We have had 15 years of Scottish National Party rule. I don't think they've proven their worth.»

The 62-year-old has previously been highly critical of the Scottish National Party's economic performance, saying earlier this year that Scotland was considered «not worth investing in».

The Scottish National Party has been mired in controversy since former leader Nicola Sturgeon was arrested following allegations that £600,000 donated to the independence campaign was misappropriated.

Sir Tom said that there have been some improvements under Mr. Yusaf. succeeded Ms Sturgeon, but it was too early to judge his performance.

He said: “Our previous First Minister didn't really do business to the detriment of Scotland. To be honest, the new first minister is at least listening to business. It makes itself affordable.”

The Institute for Financial Studies warned last week that Scotland's deficit is much larger relative to the size of its economy than the UK's deficit: 9% compared to 5.2%.

The think tank has said that if Scotland becomes independent it will need even more spending cuts or tax increases in the coming decades than the rest of the UK.

The only way to solve this problem will be through a significant increase oil and gas revenues or faster growth of the onshore economy.