US giants snub Britain over taxes

AMERICAN firms are snubbing Britain because of the high tax burden and a lack of economic ambition, according to KPMG.

In a revelation that will pile pressure on Jeremy Hunt to scrap a planned increase in corporation tax, policy head Tim Sarson said there is ‘a general sense the UK is not quite what it was’.

He said US giants are making ‘loud noises about the lack of competitiveness of the UK regime’, with dozens deciding not to invest in the UK last year. Sarson told The Telegraph: ‘We’re not quite seen as a basket case, but people will often joke on conference calls, “What the hell are you guys doing?”’ He said the ‘signal’ sent out by the corporation tax hike – set to climb from 19pc to 25pc next month – was putting off investors.

The Chancellor has faced pressure from Tory MPs and industry chiefs to call off the increase, which they argue will drive investment away and stifle economic growth.