Diageo, Unilever threaten to leave UK

Kohoutek

"The head of Diageo, the world's biggest spirits maker, has criticised the UK tax regime, and says if it worsens his company will consider moving abroad.

Chief executive Paul Walsh told the BBC World Service that it was already "very difficult" to employ staff in the UK where they could face a 50% tax rate.

He also said corporation tax needed to be cut and called for a more simplified and unwavering tax regime.

However, the Treasury said the UK was an attractive place to do business."

http://news.bbc.co.uk/1/hi/business/8510025.stm

"The boss of Unilever has warned the company could be forced to move abroad if hit with further tax rises.

The loss of the firm that makes PG Tips and Hellman's mayonnaise would be a major embarrassment for the Government and the biggest casualty to date.

Unilever can trace its history in the UK back to the 1890s.

It is the 19th largest company in the the UK and profit last year was £3.5billion. Mr Polman is concerned about rising corporate tax, which currently stands at 28 per cent and is levied on profit.
He admitted the UK has made improvements over the past decade, but it is losing its competitiveness.

'We have to be sure when changes are contemplated [by the government] that it takes into account what other countries do as well in Europe, or outside of Europe, to provide competitive corporate tax rates.
'It is important that governments understand that the world is increasingly globalising whether we like it or not and that every individual government needs to stay competitive.'

In Ireland corporation tax is 12.5 per cent and the basic 2009 corporate federal rate of tax in Germany was 15 per cent. Another complaint from business leaders is that Gordon Brown's constant tinkering of the tax system makes it difficult to plan ahead."

http://www.dailymail.co.uk/news/article-1250083/Unilever-latest-company-threaten-pull-UK-rising-taxes.html

The government clearly needs to act now - losing these businesses would be disastrous for jobs and UK corporation tax revenue. Will the Clown in No. 10 react, or is he too obsessed with extending the entitlement culture to woo the grey vote?

Graham_Devon

Brown and Mandleson may "warn" then strongly, and basically tell them they are wrong.

Kohoutek

Mandelson with have another "strong discussion", just like he did with the CEO of Kraft to 'protect' UK jobs.

1984ReturnsForReal_2

I remember Diageo were in a spot of bother not so long ago on a buyout or funding of some sorts.

They must be short of cash after the Governments crack down messages to do with binge drinking..

purch

Goodbye...

Rochdale_Pioneers

purch wrote: »

Goodbye...

Absolutely. Let them go.

The 50% tax line is cobblers. UK staff are not going to uproot themselves and their families just to save a few quid in tax. Its not that long ago since the basic rate was 33% !!!!!! - 50% on a six figure salary is hardly theft.

Thrugelmir

Rochdale_Pioneers wrote: »

Absolutely. Let them go.

The 50% tax line is cobblers. UK staff are not going to uproot themselves and their families just to save a few quid in tax. Its not that long ago since the basic rate was 33% !!!!!! - 50% on a six figure salary is hardly theft.

Thats a positive attitude.

Should we tell the Finance Industry to do the same?

Rochdale_Pioneers

Thrugelmir wrote: »

Thats a positive attitude.

Should we tell the Finance Industry to do the same?

I think we did. Have they gone? Its just bluster.

Or should we let economic policy be set by a handful of companies? So lets say we waive the 50% rate. Whats to stop them going after 40% next?

HAMISH_MCTAVISH

Rochdale_Pioneers wrote: »

Whats to stop them going after 40% next?

Good idea. Even better, lets set a long term goal of 20%.

Freeze public spending at todays levels for a decade or two, and let inflation do the work.

Time to put the leech on a diet......;)

Thrugelmir

Rochdale_Pioneers wrote: »

I think we did. Have they gone? Its just bluster.

Or should we let economic policy be set by a handful of companies? So lets say we waive the 50% rate. Whats to stop them going after 40% next?

So you are happy to risk an industry which generates around 15% of GDP and 25% of Tax Revenues........

You need to think through some of your comments. The UK is immune etc etc , blame the Tories etc etc. You seem to sum up the Labour line which currently lacks any coherent strategy. Which for a Government in power is absolutely shocking.

smamst

Rochdale_Pioneers wrote: »

Absolutely. Let them go.

The 50% tax line is cobblers. UK staff are not going to uproot themselves and their families just to save a few quid in tax. Its not that long ago since the basic rate was 33% !!!!!! - 50% on a six figure salary is hardly theft.

Actually it is theft. All tax is theft. It's just something we have to come to accept in human society. Taking money from someone whatever the reason is theft.

Willingly paying for services or charity is not theft.

I'd thought you Rochdale would appreciate that here more than most.