Pharmaceuticals leaving the UK for tax reasons
Many medical sales organisations are moving their business headquarters overseas to escape the British business tax system.
Despite repeated calls by the government that the UK business tax system is highly competitive, the actions of medical sales firms would seem to suggest the contrary. Indeed it's not just the pharmaceutical industry looking for the door. Both Shire and Proctor and Gamble are recent names to take their business elsewhere.
Shire, although still housing their medical sales jobs in the UK, have moved their operations to Ireland where the corporation tax is 12.5%, this in comparison to the UK's 28%. In recent years many pharmaceutical companies have already moved other parts of their business, such as research and development, and manufacturing to Asia to benefit from cost savings in the labour market.
It's another headache for the government with conservative ministers calling for an immediate cut in corporation tax of 3% to prevent further losses overseas. The pharmaceutical industry has always been one of the most successful on the UK. Now, it appears to be gradually moving all parts of it's operations overseas, leaving only medical sales jobs in the UK.
