Scottish business leaders are divided over how far the UK government should go in giving the Holyrood Parliament extra powers over taxation.

The differences of opinion emerged after business figures launched a campaign for more tax powers to be given than those proposed by Sir Kenneth Caiman's Commission on Scottish Devolution.

The Campaign for Fiscal Responsibility said that it had received an 'encouraging rush of support' since announcing its initiative on June 3.

It argued that the Caiman plan to give Scotland control over a 1Op share of income tax did not go far enough.

Ben Thomson, chair of think-tank Reform Scotland, which is co-ordinating the campaign, said: 'It would appear there is a groundswell of opinion in favour of giving Holyrood responsibility for raising, as well as spending, the money it receives.'

Members of the CFFR believe Caiman's proposals are 'flawed' and might damage the Scottish economy. …