Darling under fire as City exodus looms
Two more leading financial services firms warn that they may quit Britain over tax
Brit Insurance CEO Dane Douetil, a leading figure in the Lloyd’s of London market, has reignited fears of a mass exodus of big business from British shores, by confirming that his firm is seriously considering leaving the UK for another tax domicile.
Douetil said a decision would be reached within six months on whether Brit will follow companies such as Shire Pharmaceutical and United Business Media by relocating to Dublin, or another European financial centre such as Geneva.
He said: “The current situation means we are uncompetitive compared to businesses based elsewhere. We need to find somewhere with the right mix to hold our capital.”
“If we were to stay, we would like to see some certainty on foreign profit taxation, as well as regulation,” he added. Ernst & Young have been hired to advise on a potential move.
Asset manager Henderson Group also admitted it had itchy feet yesterday, as it confirmed that it was mulling over a move to the Republic of Ireland, where corporate tax stands at just 12.5 per cent, compared to 28 per cent in the UK
Should both Brit Insurance and Henderson decide to relocate, it would signal that Chancellor Alistair Darling’s hearts and minds campaign to win over big businesses worried about tax has failed.
Brit Insurance released interim results yesterday, showing a 53 per cent dip in profits, in line with expectations.