Government seeks to mollify big business

Date: Monday 22 Feb 2010

UK Prime Minister Gordon Brown unveiled an ‘Investors’ Charter’ at the Global Investment Conference on Monday as he sought to convince companies that Britain is still a good place to do business.

The charter laid out the government’s commitments to companies that base themselves in the UK. Among the pledges to businesses laid out in the charter were commitments to maintain and develop an internationally competitive tax and regulatory framework, supportive of investment and innovation, and access to the ‘world’s leading international financial centre – an unrivalled concentration of capital and capabilities.’

Around 250 company bosses, entrepreneurs and academics are attending the conference.

Meanwhile, Chancellor of the Exchequer Alistair Darling intends to unveil a ‘Tax Framework for Multinationals’ that will seek to ensure firms operating in Britain do not operate under a competitive disadvantage or get bogged down in a swamp of red tape.

The Treasury is said to be keen to convince multinationals that they will be consulted on future tax policy. The recent introduction of a 50% top tax rate on earnings above £150,000 a year has prompted numerous business leaders, particularly among the investment banking community, to warn of a talent drain as high earners seek out softer tax regimes, while on the corporate front a number of companies, such as insurer Hiscox, have switched their domicile from Britain to cut their tax bills.

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