The UK is one of the most attractive places to do business in the world, a bi-annual study of business competitiveness by KPMG has found.
It came fourth out of the G7 countries plus Australia, Mexico and Netherlands, and was ranked second for corporate services, third for digital services and fourth for research and development (R&D) and manufacturing.
The UK is currently ranked behind Mexico, which is first, Canada, second and the Netherlands, third but as its rate of corporation tax reduces it looks set to move up the table.
Simon Collins, KPMG’s UK chairman said:
“There is no doubt that the UK is in a hotly contested international competition for global investment. The decisions international businesses make when they locate have an important economic impact on the countries they operate in and can have a powerful social impact.”
The recent investment by Siemens, who plan to build a new offshore manufacturing plant in Hull, shows the world that Britain is a great place to invest, Mr Collins said.
The research shows that for digital services operations, Canada, the UK and France offer the lowest corporate effective tax rates (ETRs), while for corporate services and manufacturing operation, the UK, Canada and the Netherlands offer the lowest ETRS.
Chris Morgan, KPMG UK head of tax policy, said the attractiveness of a country’s tax regime should never be underestimated.
Photo by David Pacey