Graham Mackay "encouraged" by Govt tax stance

Graham Mackay "encouraged" by Gov't tax stance

The CEO of SABMiller has said he is encouraged by the new UK Government's attitude to tax on business, amid speculation the brewer could relocate its headquarters away from the country. 

Graham Mackay confirmed to just-drinks today (20 May) that SABMiller has been considering its position in the UK.

Speculation over the last 12 months ha suggested that several FTSE100 companies have eyed a move away from the UK in order to reduce corporate and personal tax bills. Diageo's CEO, Paul Walsh, is one of those who has warned that the country has become uncompetitive as a corporate base for multinational firms.

Walsh and Mackay will be watching closely the new UK Government's Budget, scheduled to be unveiled on 22 June.

"We are encouraged by the statements made by the new Government," said Mackay following SABMiller's full-year results announcement.

New UK Chancellor George Osborne said yesterday that the Government is planning "wholesale reform" of corporate tax.

"We will reform the corporate tax system by simplifying reliefs and allowances, and tackling avoidance, in order to reduce headline rates”, Osborne said in a speech to the Confederation of British Industry.

“Our aim is to create the most competitive corporate tax regime in the G20, while protecting manufacturing industries.”

The Government will set out a five-year plan for corporate tax reform on 22 June.