MEMBERSHIP
BLOG
MAGAZINE
EVENTS
ACADEMY
RESOURCES
ABOUT

Success stories
COMMUNITY & CONNECT
PROCUREMENT STRATEGY
CATEGORY INTELLIGENCE
BACK

Will the UK's tax concessions attract procurement?


23-Mar-12 10:25

If there’s one thing that can be said for the current British government, it’s that it’s pro-business. Together, prime minister David Cameron and chancellor George Osbourne want to lower the rate of corporation tax and introduce a number of measures that will attract major organisations to the country.

 

Of course, this isn’t revolutionary. But if PricewaterhouseCopers are to believed, the duo’s charm offensive is beginning to pay off, with as many as 15 multinational organisations already considering locating "substantial operations" in Britain - as reported in today’s Financial Times.

 

Not all of this is directly relevant for CPOs (pharmaceutical giant GlaxoSmithKline announced today that it would invest £500m in its first manufacturing facility to be built in the UK for 40 years, for example). But PwC partner Adrian Yeeles believes that one of the key areas in which global companies may benefit from by locating in the UK, is procurement. And he provides some compelling evidence.

 

US, Japanese and South Korean companies are among the 15 or so organisations thinking of shifting parts of their business to the UK, claimed Yeeles. Crucially, however, more than a third are currently located in Switzerland. "We are at a position now where the UK is starting to look extremely attractive for companies that want to set up either a holding company or an operational hub," he told the FT.

 

Establishing centralised procurement hubs in tax-friendly jurisdictions can deliver huge financial benefits, but it doesn’t come without drawbacks. First, the political ramifications and negative headlines that can result scare off many that would otherwise be interested. Second, the destinations themselves aren’t always the most attractive in terms of talent attraction.

 

But the UK is a location with a plentiful supply of skilled labour, it’s an attractive place to relocate to and in London it has one of the most vibrant, business-friendly cities in the world.

 

A year ago, we ran a feature in the asking whether Switzerland is procurement’s saviour, with the tax and infrastructure benefits it brings. Today, it’s the UK that’s promising the same.

 

David Rae is editor of Procurement Leaders. To subscribe to the magazine, click here.


David Rae David Rae is Content and Community Director at Procurement Leaders. He is responsible for content strategy and community-driven initiatives and draws on 18 years covering procurement, finance and technology, for senior business leaders. Follow David on Twitter: @david_rae

 
Subscribe to feed Subscribe to feed
Rating (0 vote/s)
 

SUBSCRIBE TO NEWSLETTER


FREE 

SUPPLEMENTS

PREDICTIVE INSIGHT TO FUEL WORLD-CLASS DECISIONS

Unique, high value research and analysis provides CPO's with the information they need to make the right strategic choices.

FREE 

WHITEPAPERS

OFFERINGS

 

ABOUT

MEMBERS

FOLLOW US

AWARDS

MEMBERSHIP

 

COMMUNITY

 

MAGAZINE

 

EVENTS

 

ACADEMY

 

RESOURCES

CONTACT US

 

ABOUT US

 

ADVERTISE WITH US

 

FREQUENTLY ASKED QUESTIONS

 

WHAT'S NEW

SIGN IN

 

BECOME A MEMBER

 

REQUEST A DEMO

 

JOB SEARCH

LINKEDIN

 

TWITTER

 

GOOGLE+

 

RSS

 

NEWS ARCHIVE

Procurement Leaders Awards

TERMS OF USE . PRIVACY POLICY . COOKIE POLICY

© Sigaria Ltd and its contributors. All rights reserved. www.sigaria.com

Sigaria accepts no responsibility for advice or information contained on this site although every effort is made to ensure its accuracy. Users are advised to seek independent advice from qualified persons before acting upon any such information.