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Scottish government slammed over plans for more corporate tax breaks at ‘green’ freeports

THE Scottish government was slammed today over plans for more corporate tax breaks at its “green” freeports.

Green freeports — a joint enterprise between the Scottish and British governments — give special concessions to business on tax and National Insurance contributions, expected to amount to saving corporations £52 million.

The SNP has now proposed to go even further, however, offering relief on Land and Buildings Transaction Tax (LBTT) for up to five years.

It is also providing funding to cash-strapped local authorities who are willing to give businesses relief on their non-domestic rates.

Tom Arthur, the Scottish government’s public finance minister, said: “We intend Scotland’s green freeports to become internationally competitive clusters of excellence. 

“By offering LBTT relief we are trying to boost that process by encouraging businesses to expand.”

But the Scottish TUC has raised serious concerns about giving tax breaks to big business.

STUC general secretary Roz Foyer said: “We still harbour deep reservations over the use of freeports and adding further tax breaks to incentivise this deeply flawed policy does no favours in achieving progress towards a just transition.

“While the Scottish government may claim that it is trying to shape freeports imposed upon them by the UK government, this is a devolved tax power being used by the Scottish government entirely of its own volition. 

“If the future first minister is serious about building a fair work economy, one that values workers and our communities, giving tax breaks to businesses — which in turn reduces public spending revenue streams — is an odd way to go about it.

“Rather than risk a race to the bottom on workers’ rights and tax, the Scottish government should be exploring democratic forms of public ownership alongside public investment in our ports to benefit workers, communities and the planet.”

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