back to article Gov.UK begs Google 'n' U.S. tech pals: Forget Ireland, come to Blighty

The government has opened an initiative to try to tempt US tech companies to set up shop in the UK – rather than our "tax rate lite" neighbour Ireland. The "HQ-UK" initiative is intended to showcase why Blighty is the best place to establish an international base. Part of the efforts include a "concierge service" offering a …

  1. Tom 7

    Elon Musk might be interested

    for his porcine space program.

    1. kmac499

      Re: Elon Musk might be interested

      If only we could get him interested in Skylon... even if only as a contingecy Plan B for his Hover-Falcons.

  2. Tom Chiverton 1

    Doublethink

    "Google 'n' U.S. tech pals: Forget Ireland, come to Blighty"

    Is that before or after you ban encryption, Mr Cameron ?

  3. JimmyPage Silver badge
    Unhappy

    So, so so pathetic

    Instead of tempting other countries to come here, why not get this country to innovate and expand.

    To me this is chickens coming home to roost, and an acid comment on the past 15 years.

    1. Paul Hovnanian Silver badge
      Joke

      Re: So, so so pathetic

      "Instead of tempting other countries to come here, why not get this country to innovate and expand."

      Because the tax rate can always be revised back up once companies have taken the bait. You can't un-innovate.

    2. Syntax Error

      Re: So, so so pathetic

      Yes. Block Google and get a UK or English company to set up its own search engine for example.

  4. Kristian Walsh Silver badge

    It's not just tax...

    The one thing the UK government could do to undermine Ireland's attractiveness to American companies would be to join the Euro.

    It's not just a tax-wheeze that these companies are looking for. They want a base in a major trading zone, where people speak English, and there isn't so much veiled hostility towards the USA.

    (That latter point was made to be more than once by American colleagues about why they didn't like travelling to the UK, but I'd say it counts for more than any amount of tax schemes...)

    1. codejunky Silver badge

      Re: It's not just tax...

      "The one thing the UK government could do to undermine Ireland's attractiveness to American companies would be to join the Euro."

      How is tying ourselves to a failing part of the world by joining the ill thought through mechanism which is sinking said part of the world? Surely American companies would be more interested in successful countries/groups?

    2. Julz

      Re: It's not just tax...

      Well, public support for the IRA casts a long shadow without even going anywhere near the resent armed trips the USA government has made to spread peace and democracy abroad.

    3. Dan 55 Silver badge

      Re: It's not just tax...

      Britain is in the same trading zone as the rest of the EU, it's just not got the same currency as most of it.

      And that is a really good thing based on how things have gone in the eurozone over the past seven years.

      1. Anonymous Coward
        Stop

        Re: It's not just tax...

        I wouldn't suggest joining the Euro. The ECB is trying mightily to rise above all the national fiscal and monetary agendas within the Eurozone, but it remains to be seen whether they can actually succeed.

        1. P. Lee

          Re: It's not just tax...

          >The ECB is trying mightily to rise above all the national fiscal and monetary agendas within the Eurozone, but it remains to be seen whether they can actually succeed.

          You mean, "impose a single government?" That is the only way a single currency would ever work but it will never happen in Europe.

          I think that's a good thing. I value harmonious relationships through diversity not over-riding local objections.

          The eurozone may be sinking, but it appears the UK can manufacture its own economically disastrous debt mountain.

          1. codejunky Silver badge

            Re: It's not just tax...

            @ P. Lee

            "The eurozone may be sinking, but it appears the UK can manufacture its own economically disastrous debt mountain."

            Doing it yourself is unpopular. Having others do it to you is far worse. No choice. No democracy. No freedom. Just more debt because the rest of the 'club' want to punish you. And your voice, rights, choice, freedom doesnt matter.

    4. jonathanb Silver badge

      Re: It's not just tax...

      Given that 70% of all Euro denominated transactions worldwide go through the City of London, I don't think the fact it isn't our official currency is much of a problem.

      1. Yet Another Anonymous coward Silver badge

        Re: It's not just tax...

        %70 of euro currency sales going through a computer in London, buying euros shares with imaginary euros and selling shares with imaginary euros is simple.

        Running a manufacturing business on low margins when you buy raw material in $, set your prices and make sales in euro and pay your taxes in GBP is trickier.

        1. quarky

          Re: It's not just tax...

          "Running a manufacturing business on low margins when you buy raw material in $, set your prices and make sales in euro and pay your taxes in GBP is trickier."

          I guess we could always cut manufacturing red-tape by leaving the EU, this retaining the flexibility of our own currency and improving efficiency at same time.

          The EU with it's "thou shalt not" attitude over individual action around attracting business, and it's drive towards "harmonization" (in other words removing competition by trying to make all countries adopt the same tax rates and policies) is just making the Eurozone (and EU) less attractive to business.

    5. fruitoftheloon
      WTF?

      @Kristian - ERR WHAT? Re: It's not just tax...

      Kristian,

      Good joke there about us joining the Euro, after all it has worked at great for the current 'members' hasn't it now?

      Cheers,

      Jay

  5. John G Imrie
    Unhappy

    The "HQ-UK" initiative is intended to showcase why Blighty

    The "HQ-UK" initiative is intended to showcase why Blighty London

    FTFY

    As I doubt any of these companies will be looking outside the M25

    1. Anonymous Coward
      Anonymous Coward

      Re: The "HQ-UK" initiative is intended to showcase why Blighty

      Not sure inside the M25 would be a great option. The costs, especially for 'low cost' workers and floor space is much too high. A lot of tech companies set up in Reading and Bracknell for instance.

      1. Yet Another Anonymous coward Silver badge

        Re: The "HQ-UK" initiative is intended to showcase why Blighty

        None of them are going to have actual new employees in Britain.

        Google's HQ in Ireland only employs one person, admittedly he is the hardest worker int he word - being personally responsible for all Google's EU sales.

        The only people that benefit from the HQ being a brass plaque at a lawyers office in London rather than Dublin are lawyers.

        1. Anonymous Coward
          Anonymous Coward

          Re: The "HQ-UK" initiative is intended to showcase why Blighty

          Google's HQ in Ireland only employs one person, admittedly he is the hardest worker int he word - being personally responsible for all Google's EU sales.

          Complete and utter rubbish. Opponents of low corporation tax levels always like to reel out the line that all it'll achieve is a movement of brass nameplates, and no additional employment whatsoever. The problem is, it's not true. It generally creates lots of employment, as outlined in the article. They appear to be wasting an enormous amount of cash on a large office building for a single employee:

          https://www.google.co.uk/about/careers/lifeatgoogle/reo-to-sell-montevetro-building-to-google.html

          Why would they waste all that money? In fact, a quick search reveals that Google employs about 2,500 people in Ireland, and is spending an awful lot of money there.

          A little bit more useful to Ireland's economy than a single employee and a desk.

          1. Yet Another Anonymous coward Silver badge

            Re: The "HQ-UK" initiative is intended to showcase why Blighty

            And Google currently employs more than that in London - despite their HQ being in Ireland.

            So if they move their brass plaque to London are they going to move all those Irish employees?

            1. P. Lee

              Re: The "HQ-UK" initiative is intended to showcase why Blighty

              HQ might be a mis-nomer.

              What it comes down to is which company owns the IP rights.

              Companies are a bit of legal fiction. IP is a bit of legal fiction. If you want intellectual property to exist, then you have to put up with fiction. If you want British companies to be able to license IP abroad, you have to accept foreign companies doing the same. "Oh but they employ more people in London" has nothing to do with profit because a foreign company owns all the bits of value.

              You want international trade? Lack of profits to tax is a result of that and no, big corporates not making profit locally is not the reason for the government running a stupidly high deficit which will rebound and cause a disaster. Neither will Google et al paying the amount of tax you've thought up fix your deficit. Stop spending more than you earn, especially on killing people abroad.

            2. Anonymous Coward
              Anonymous Coward

              Re: The "HQ-UK" initiative is intended to showcase why Blighty

              So if they move their brass plaque to London are they going to move all those Irish employees?

              What, all one of them?

              When you start making stuff up to get your point across, your argument loses all credibility.

        2. Andrew Moore

          Re: The "HQ-UK" initiative is intended to showcase why Blighty

          "Google's HQ in Ireland only employs one person"

          Strange- there was a lot more than that in the office when I visited 3 weeks ago...

  6. Dan Paul

    Do you really think...

    that those companies are that ignorant as to fall prey to your latest tax scheme?

    Or any one of a number of ways your governments want to suck the life out of successful companies?

    It's bad enough at home without exacerbating the situation.

  7. Anonymous Coward
    Anonymous Coward

    Come to blighty

    or not. If you come to Blighty you can be sure that hackers will attack your systems and when convicted that will get a slap on the wrist while Mummy seduces politicians.

    1. Valeyard

      Re: Come to blighty

      that sounds too specific for you not to be speaking from experience

  8. Anonymous Coward
    Anonymous Coward

    nice try

    >The government made no mention of the upcoming Diverted Profits tax legislation, which would introduce a 25 per cent tax on company profits made in UK but diverted abroad,

    As opposed to the only 20 percent tax if you setup locally. The only way that is much incentive is if the UK market wasn't fairly insignificant to the world market which it is.

  9. Bob Dole (tm)

    I think the UK needs to figure out what it is they actually want. Do you want companies to either move there or be started there? Then lower the costs. If you just want to lash out and penalize companies for doing business there then carry on as normal.

    The first step might even be to do some research into why US companies completely dominate the tech sector.

  10. Gannon (J.) Dick
    Pint

    Tell them you are emulating their Business Model ...

    ... then lock them in a closet with a dial up connection a 5000 page EULA and a case of beer.

    Works every time.

  11. Ed Jackson

    Why would they care what the tax rate is? They wouldn't pay it anyway,

  12. Alan Bourke

    Tax is an issue

    But it's not as big an issue as you might think. The fact that Ireland is the only English-speaking country in the Euro currency is very important too.

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