By Steve Bargeton, political editor

FIRST MINISTER Jack McConnell yesterday raised the prospect of slashing business tax for thousands of Scottish firms.

Pressure is mounting on the Chancellor to cut corporation tax in Northern Ireland from 30% to 12.5% to match that of the Irish Republic.

And at question time yesterday Mr McConnell said he would want the same tax cut for Scotland.

Later the First Minister’s official spokesman stressed there were no firm proposals to reduce corporation tax in Northern Ireland.

He said the issue of corporation tax in Ulster and the possible implications of that have been the subject of discussions between the First Minister and ministers from the UK Government, Irish ministers and politicians from Northern Ireland.

The issue was first raised with Mr McConnell during his visit to Stormont in May.

The matter had not been raised in the Scottish cabinet.

“The First Minister’s view is that there should be consistency in corporation tax across the UK,” said the spokesman.

“But he would not want Scotland to be disadvantaged.

“The First Minister, on a whole range of economic fronts, would want Scotland to have at least a level playing field.

“His job is to stand up for Scotland and if another part of the UK is getting economic advantage, he would fight Scotland’s corner.”

SNP economy spokesman Jim Mather called on the First Minister to “clarify his position.”

“Mr McConnell is now giving the impression he agrees that Scotland should receive the same benefits as Northern Ireland in terms of being able to lower corporation tax,” he said.

“He now needs to clarify his position.

“Does he now finally agree with the SNP that Scottish businesses would benefit from a reduction in corporation tax, or does he stand by his previous statements opposing this potential boost for our economy?

“Mr McConnell may be rudderless on this issue, but he can’t fudge the matter for it’s simply too vital to Scotland’s national interests.

“We must know his true position immediately, for uncertainty can only damage Scotland’s future prospects and our ability to attract and retain investment.”