More UK companies seeking to move overseas
With news that Informa, the publishing giant in the UK, has decided to move to Switzerland to avoid "double taxation" introduced by Alistair Darling on overseas earnings, it would appear that moves to tighten the UK tax regulations on overseas earnings have backfired. At a time when the UK government is in desperate need of funds the decision to squeeze as much income as possible in the short to medium term has not gone down well in UK corporate circles.
Informa is not the only UK company to be looking overseas and will no doubt not be the last. More worryingly we are also starting to see a drip feed of entrepreneurs suggesting that their future may lie away from the UK purely on financial and taxation issues. While talk of mass uprooting from the UK is probably wide of the mark at this moment in time there is a feeling that unless the UK government (whoever this may be after the next election) is a little more "business friendly" the situation could worsen substantially.
Many people will have little sympathy for the rich businesses and rich business people moving overseas to escape increased UK taxation, but these are the roots of the UK economy in the short, medium and longer term.
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