Humza Yousaf is pressing Rishi Sunak to cut tax for artificial intelligence and renewable energy firms as he tries to rebrand himself as a pro-business first minister.
In a letter to the prime minister, trailed in The Times newspaper, Mr Yousaf said he backs recommendations made by Sir Tom Hunter to slash corporation tax for targeted industries.
Powers to reduce the rate are reserved to Westminster and Mr Yousaf has asked for “an early discussion about the action that our respective governments can take together in order to support growth across Scotland’s economy”.
He said that he was keen to examine “using tax and other financial levers to incentivise investment in sectors such as renewable energy, high-value manufacturing, life sciences and medical technology; and digital, big data and artificial intelligence”.
The proposals are lifted directly from a study led by Sir Tom, produced by Oxford Economics, which suggested the headline rate of corporation tax be cut to 15% – it is 25% at present — in the key growth sectors highlighted by Mr Yousaf.
It is also part of a wider plan to change the image of the first minister, the Scottish government and the SNP after relations with business broke down under Nicola Sturgeon’s premiership.
It is understood that the first minister will today announce policies aimed at pleasing businesses in his programme for government, including additional support and cutting red tape.
“The first minister’s focus is firmly on community, equality and opportunity — and opportunity means he is unapologetically pro-growth,” a source told The Times.
“Supporting business helps create good jobs, delivers fairer wages, expands the country’s tax base and pays for policies to tackle poverty. When businesses succeed, Scotland succeeds. The first minister is determined to help business succeed.”