Government tax policy is forcing viable businesses to the wall across Scotland, Liberal Democrat MP for Inverness, Nairn, Badenoch and Strathspey, Danny Alexander said today. Mr Alexander said his experience trying to save Highland Airways – eventually forced into administration by the taxman – was born out by a Scotland on Sunday investigation published today which found that nearly one firm a day has been forced to close by HMRC over the last two years.

Commenting, Danny Alexander said:

“Highland Airways was a viable business, with a potential rescue plan in place, and goodwill and support from every other public agency involved. If it wasn’t for HMRC’s pig-headed adherence to Treasury policy, over 100 people would still be in work today. As it is the Highlands has lost a good business, people have lost their jobs, and the Government is paying benefits bills, not receiving tax.

“Today we learn that this sort of thing is going on across the country day in, day out. While the Labour party rhetoric is that they will help firms that are struggling, in many cases it seems the opposite is happening.

“The Government should be helping firms that can survive to do so, even if that means spreading repayment of overdue tax over a longer period. Better to get tax coming in over a longer period and keep people in work than pay out even more in benefits.

“Forget the national insurance row, government policy is hurting jobs and businesses right now.”