Post date: Nov 30, 2010 2:8:7 PM
International pharmaceutical firms GlaxoSmithKline and AstraZeneca have both decided to invest further in the UK following a government decision to reduce corporation tax on patents to 10 percent.
UK-GLAXO JOBS - Drugmaker GlaxoSmithKline has announced plans to spend 500 million pounds in Britain.
The announcement follows the government's decision to reduce corporation tax on profits made from newly commercialised patents to 10 percent.
Glaxo expects to create around 1.000 jobs in Britain over the life time of the patents - although it will be cutting jobs in other areas.
A new Glaxo factory - the first in Britain for 25 years - will be built and 50 million pounds will be invested in new technologies such as environmentally- friendly "green" chemistry.
Glaxo's rival drugs group AstraZeneca also plans extra investment in Britain of several hundred million pounds as a result of the change.
The new tax plan was originally proposed by the previous Labour government and was initially questioned by the present coalition on the grounds of cost.
Ingrid Smith, Reuter