|
|
24 Oct 2011
DRINKS MANUFACTURER Diageo has threatened to relocate overseas if the 50% income tax rate is retained.
Paul Walsh (pictured), its chief executive, said he was no longer creating senior jobs in the UK because of the top rate of tax.
Further reading
"I believe the 50% tax rate will lead to the long-term damage to this nation's competitive edge," he told the Mail on Sunday. "We will not be able to base people here and increasingly we will have to look at locating our quality people in lower tax jurisdictions."
The business, which makes Guinness, Johnnie Walker, Smirnoff and Baileys, is based in Brent, north London. But Walsh added: "At the moment, if I am going to create jobs, I am not going to create them in the UK because it's a high-cost environment. If I employ staff in Singapore with a 10% tax rate, I don't have to pay them as much for them to feel good and to go home with more money."
A study published by Lloyds TSB showed that 15% of Britain's 5.5 million expatriates have cancelled plans to return in the UK.
You may also like
Search thousands of financial jobs:
Search thousands of financial jobs:
Careers
Search for jobs
Click to search our database of all the latest accountancy roles
Create a profile
Click to set up your profile and let the best recruiters find you
Jobs by email
Sign up to receive regular updates with the latest roles suitable for you
Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment
Island Mentality
In the global village that we now have it is not only that enterprises are able to decide where to locate staff, but also that people are able to decide in which jurisdiction they wish to live & work. Compared with many of its competitors the UK is over-regulated & over-taxed with pitifully poor education & health infrastructures. Sadly the UK government and electorate have an "island mentality" & fail to recognise both the risks and logical outcome of the policies they pursue. Without a major course change the UK will quickly and inevitably become an economic back-water and a far poorer country.
Posted by: Howard Mendes da Costa, 24 Oct 2011 | 11:35
Good Riddance
The massive inequality in this country does us all enormous harm http://www.equalitytrust.org.uk/why. Let the super-rich go.
Posted by: chatman, 24 Oct 2011 | 14:04
It's Not About Fairness
We need to do what's right for Team GB here, and that's add to the other great advantages of living and working in the UK by establishing a tax regime that draws in the most talented from around the world. And we need leaders with the political courage to sell that to the voting public. The last 20yrs of UK politics have been characterised by a lack of just that kind of courage, you could say.
Posted by: Philip Walker, 24 Oct 2011 | 16:18
Another Threat from another Employer
If it was this simple, Daigeo would have already relocated without any thought.
As Mr Walsh already knows the charms of England far outweigh the tax advantages of Singapore or Switzerland.
http://www.dailymail.co.uk/news/article-397246/163-4million-year-drinks-tycoon-bitter-divorce.html
Posted by: Sweet Corn, 24 Oct 2011 | 21:34