John Swinney said economic decline must be tackled

Party leader John Swinney said it should be able to reduce business tax to help firms become more competitive.

Addressing MSPs, Mr Swinney said "a critical mass" was building in the drive for financial independence.

Labour dismissed the call as an SNP ploy to gain political independence by stealth and warned that it amounted to "a constitutional gamble".

The status quo is simply not an option, and this debate is a real chance to kick-start real change in Scotland SNP leader John Swinney

At present, parliament can vary the basic rate of tax by up to 3%.

Mr Swinney urged MSPs from all political parties to call for greater parliamentary powers.

He said: "We all recognise that Scotland cannot go on treating the symptoms of economic decline - we have to get on and treat the cause of that decline.

"The status quo is simply not an option, and this debate is a real chance to kick-start real change in Scotland."

But Finance Minister Andy Kerr warned that such a move would trigger constitutional uncertainty.

"The people of Scotland who promote financial independence are misleading businesses and the public," he said.

Andy Kerr: "Constitutional gamble"

"They never say exactly what would change and by how much - who pays? How would the books be balanced?

"Financial independence and fiscal autonomy claim to be all things to all people - a panacea for all challenges.

"In reality, going it alone would cause massive risk, uncertainty and upheaval."

Scottish Tory finance spokesman Brian Monteith accused the SNP of distorting Scottish history "like Braveheart where it is all England's fault".

Spending deficit

He said the majority of voters were not interested in giving parliament more powers.

Lib Dem MSP George Lyon, the member for Argyll and Bute, said the parliament would only be able to spend what it generated.

Mr Lyon said Scotland had a �4.2bn spending deficit.

"Scotland already spent more per capita on health, education and transport than England and Wales," he said.

"How would we preserve that advantage?"

Carolyn Leckie, Scottish Socialist Party MSP for Central Scotland region, said financial powers should be used to abolish poverty rather than improve conditions for multinational businesses.