Money matters

Following on nicely (and, perhaps, politically) from last week's Budget, came GlaxoSmithKline's announcement of plans to build its first new manufacturing facility in the the UK in almost 40 years.

The proposed facility in Cumbria is part of £500m in investment Glaxo expects to create 1000 UK jobs. The commitment follows the government's confirmation in the Budget, that a "patent box" will be introduced to encourage research and development in the UK, the culmination of a process which began with Alistair Darling.

GlaxoSmithKline chief executive, Sir Andrew Witty, said the patent box – which introduces a lower rate of corporation tax on profits generated from UK-owned intellectual property – transformed the company's view of the UK as an investment location.

He added: "We are also actively considering other investments in our UK manufacturing network which would create further jobs and reinforce the UK's international competitiveness and as a world leader in life sciences."

In an interview with BBC Breakfast, chancellor George Osbourne welcomed GlaxoSmithKline's announcement as proof the government was improving the country's economy: "You have GlaxoSmithKline, one of the world's biggest companies, one of the great British success stories, saying the Budget has changed their view of Britain as a place to invest."

"They're going to create a thousand jobs here. Now, surely my responsibility as the country's chancellor is to get the economy moving, to get jobs created, and when big companies say that about Britain, people should sit up and notice that we are changing the British economy for the better."

Is it true, as Telegraph columnist Damian Reece said: "The UK is helping manufacturers with Wednesday’s tax break. Now it’s time for manufacturers to help the UK." I would be interested to hear your views.

Elinore Mackay
elinorem@electricalreview.co.uk