The UK is in a hotly contested international competition for investment.
Posted: 27th March 2017
The UK is the fourth most competitive international location for business, according to a new study by KPMG.
The bi-annual study of more than 100 cities in 10 different countries found that the UK is one of the most attractive countries to do business, ranked fourth behind Mexico, Canada and the Netherlands respectively.
The study looked at the costs of doing business plus a range of competitiveness issues such as education and skilled labour; innovation; infrastructure; economic conditions; the regulatory environment and cost of living.
UK ranked second for corporate services, third for digital services and fourth for R&D and manufacturing.
The other countries surveyed included France, Germany, Italy, Japan, UK, US and Australia.
Simon Collins, UK chairman of KPMG, commented: "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.
“Recent news from Siemens that they plan to double investment in a new offshore wind technology manufacturing plant in Hull, creating jobs, is one such example.
"The UK has it all; competitive costs and tax and unrivalled innovation, all wrapped up in a place where people want to live. Siemens and others show the world that the UK will win the battle for global investment."
KMPG said the UK's tax regime was an important factor for international enterprises making important funding and operational decisions.
Chris Morgan, UK head of tax policy at KPMG, said: "When looking at effective corporation tax rates the UK is ranked first for manufacturing and corporate services. This shows the importance of maintaining a competitive tax system and the position will improve with the rate falling to 21% and then 20% next year.
The attractiveness of a country's tax regime should not be underestimated. Our research also shows that tax typically represents up to 14% of location-sensitive costs; an important reminder to policy-makers."