CBI criticises income tax proposals for Scotland

Plans to implement a new income tax in Scotland have been criticised by the CBI, it has been reported by the Scotsman.

John Swinney, the Scottish finance secretary is intending to introduce a 3p local income tax in place of the current council tax.

However, this would increase the rate of inflation as well as put off people from investing in the area, it has been claimed by business chiefs.

The organisation also described that many companies would be reluctant to relocate to Scotland if this tax were to be imposed.

CBI Scotland commented: "Evidence from abroad has found that relatively high personal income tax levels act as a restraint on business start ups, as well as on investment and hiring of staff undertaken by micro businesses."

The CBI is an institution in the UK which is dedicated to ensuring that businesses have the optimum conditions in which they can operate.