Tax laws prevented fashion company opening second factory
Mulberry chief says rising NI rates would have too big an effect on the firm's operating costs
THE CHIEF EXECUTIVE of a major luxury goods retailer has claimed that UK tax laws have prevented the company opening a second factory.
Godfrey Davis, head of Mulberry, said that the company had considered adding to its Somerset factory. But he said rising National Insurance rates would have too big an effect on operating costs.
“We would love to make more in the UK but over the past 10 years the political and economic climate has not been conducive to investing in the UK,” Davis told Drapers magazine.
He called on the government to introduce “National Insurance holidays” for manufacturers setting up in the UK.
Employer NI contributions will rise from 12.8% to 13.8% for those earning more than £136 a week in April.