GSK and AstraZeneca 'to stay in UK'
9 May 2008 00:00 in Pharmaceutical Company Financials
The chief executive of GlaxoSmithKline (GSK) says the company will not leave the UK for tax reasons.
Jean-Pierre Garnier, who is a member of the prime minister's Business Council for Britain (BCB), noted some companies were relocating to Ireland to take advantage of the tax system there.
However, he said the government was listening to industry concerns over global competition and suggested companies who were leaving the UK were getting ahead of themselves.
His comments followed Shire's announcement that it was switching its tax domicile to Ireland, though AstraZeneca has also indicated it will not move from the UK.
"We are very confident that the government is listening to business and hearing what it takes to compete globally.
"The prime minister understands globalisation."
UK corporation tax is 28 per cent and 12.5 per cent in Ireland.
Other members of the BCB include Sir William Castell of the Wellcome Trust, Sir Richard Branson and Tony Hayward of BP.
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