The First Minister wants to apply Thatcherite economic policies to an independent Scotland, Labour have claimed.
Leader Johann Lamont levelled the charge against Alex Salmond – who in turn accused the Labour Party of “adopting wholesale Tory economic policies”.
The claims were made during heated exchanges between the two rivals at First Minister’s Questions.
Ms Lamont pressed the First Minister on the impact of his proposals to cut corporation tax to a level 3% below that in the rest of the UK.
The SNP leader has already claimed such a move would create 27,000 jobs and an increase in GDP by more than 1% over the medium term.
But Ms Lamont claimed the policy would cost £385 million a year, adding: “That is the equivalent of 7,000 jobs each and every year.”
She said: “Isn’t it the case that Alex Salmond said ‘Scots don’t mind Margaret Thatcher’s economics’? And what he wants is to apply her economics to an independent Scotland.”
Mr Salmond insisted cutting corporation tax would lead to a net increase in jobs for the country.
“This policy will result in an increase in employment, an increase in investment, an increase in GDP and an increase in total tax revenues,” he told Ms Lamont. “Even the Labour Party should think this is an excellent idea.”
As well as defending his policy he turned on Labour, who he said had now adopted Conservative economic policies.
“This is the major development in politics over the last few weeks,” Mr Salmond said. “The Labour Party high command in London have decided to adopt the Conservative Party’s economic budgetary approach, this has been said by Ed Miliband and Ed Balls.”
Mr Salmond added it was “embarrassing for the Labour Party to have pointed out in the chamber that their London leadership have decided to adopt wholesale the policies of George Osborne”.
He insisted: “The shift of the Labour Party on to Tory ground is not just a fundamental mistake, it’s a lesson for the Scottish people that the unionist parties, Tory Labour, Labour Tory, offer nothing but continued austerity.
“What is offered by an independent Scotland is investment, progress and social justice.”