Edinburgh-based Standard Life has warned that the prospect of higher income tax, imposed by Holyrood, poses an increasing risk to its business.

Last week’s agreement between the Scottish and UK governments guarantees that income tax will be almost fully devolved to Holyrood over the next few years.

The Scottish Government will become responsible for setting the rates and bands from April 2017.

Finance secretary John Swinney has already suggested he wants to shift the burden of taxation to the better off leading to speculation that he will propose restoring the 50p top rate, a policy also backed by Labour.

Standard Life chairman Sir Gerry Grimstone said: “The passing of a new Scotland Bill into law includes areas that may affect our customers, employees and some aspects of our business.

“Chiefly this will be around taxation, which will become a devolved power for the Scottish Government. We are monitoring this closely to help ensure we do not suffer any competitive disadvantage.”

The warning is included in the company’s annual report which rates the risk from political change in Scotland as “increasing” and highlights the threat posed by the “devolution and application of tax and spending power”.

Standard Life’s warning came as Carolyn Fairbairn, the director general of the CBI, said businesses and individuals could be driven south if a future Scottish Government increased the tax burden on those on high incomes.

She said: “Businesses are rightly concerned this is something that could damage Scotland’s ability to attract the best talent.

“It is inevitable that businesses will take into account differences in tax rates, and that individuals will take into account differences in tax rates. Obviously, there is total ease of mobility between Scotland and England.”