Accounting giants KPMG, PWC and EY are working with over 250 companies combined about relocation to the Britain, which is due to cut its corporate tax rate to 20% next year.
Multinational giants line up for UK tax breaks
Pfizer's bid for AstraZeneca expected to be first of hundreds of moves to the UK thanks to favourable tax regime
Hundreds of multinational companies are lining up to establish operations in the UK, paving the way for thousands of new jobs and billions of pounds in extra tax revenues.
Amid a renewed wave of mergers and acquisitions that has seen US drugs giant Pfizer’s renew its bid for rival AstraZeneca, KPMG, one of Britain’s biggest accountancy firms, said changes to the tax system aimed at improving the UK’s competitiveness were “paying dividends”. It said it was working with almost 100 multinational corporations that wanted to increase their footprint in this country.
PwC, Britain’s biggest accountancy firm, said it was in dialogue with “more than 100” multinational companies, while EY said last year that 60 firms were looking to complete global and regional headquarters relocations into the UK. EY estimated this would add £1bn to corporation tax revenues and create more than 5,000 jobs.
Ministers said the revival would help to rebalance Britain’s economy and secure a self-sustaining recovery.
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“The argument is sometimes made that if a company moves their headquarters here they might employ relatively few people,” said Mr Gauke. “But if you’ve got the senior management located in the UK, that makes the UK a more attractive place when it comes to deciding where the location of a factory might be, or where the sales and marketing operation is going to be run … that’s going to mean the creation of more jobs.”
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