SCOTLAND'S budget would develop a £2.6 billion black hole if the SNP Government cut Scottish corporation tax to the same level as Ireland's, the Scotland Office said yesterday.

Devolving the money raised from company profits to Holyrood is one of six items on First Minister Alex Salmond’s wish-list.

The UK rate is 26%, Ireland’s is 12.5%.

Scottish Secretary Michael Moore revealed the £2.6bn figure – calculated by the Treasury – as he addressed Scottish Financial Enterprise in Edinburgh. In a thinly veiled swipe at Mr Salmond, he said he “took issue” with the way the constitutional debate was being conducted, saying it was “too heavily founded in rhetoric and not enough in hard facts”.

Mr Moore said the new figure raised serious questions for the First Minister and his colleagues.

Signalling a step-change in the UK Government’s campaign to keep Scotland within the Union, the Scottish Secretary said he would put forward more evidence for the case against separation and invited Scots to be part of a “better, more mature debate on Scotland’s economic and constitutional future, founded on evidence and carefully considered positions”.

John Swinney, the Scottish Finance Secretary, said Mr Moore’s claims were “wild and unfounded”. He said figures showed corporation tax raised £2.6bn in 2009/10, “so Mr Moore’s claim that cutting corporation tax could wipe out the entire revenue is, clearly, totally incorrect”.