UK chancellor stands firm despite AstraZeneca factory snub

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

UK chancellor stands firm despite AstraZeneca factory snub

AZ image.png
AstraZeneca discovery centre in Cambridge, UK | AstraZeneca

The UK’s biggest publicly listed company will build a major factory in Ireland because it believes the British corporate tax rate is too high.

UK Chancellor Jeremy Hunt has said he won’t consider tax cuts funded by borrowing after British pharmaceutical company AstraZeneca announced a new factory will go to Ireland because it has a lower corporate tax rate.

Jeremy Hunt told the BBC on Saturday, February 11, that he was disappointed by the decision and even agreed with the company’s stance but that deficit-financed tax cuts were simply a way of passing the bill to future generations.

It came after AstraZeneca – the UK’s biggest publicly listed company – said two days earlier that it would build a new factory costing £320 million ($360 million) in Ireland, where the headline corporate tax rate is just 12.5% (though this is expected to rise to 15% in 2024).

AstraZeneca described the UK’s corporate tax rate, which is due to rise from 19% to 25% in April and will be the highest it’s ever been, as discouraging.

Former and current Conservative politicians have weighed in to criticise the UK’s approach to corporate tax policy.

Ex-Health Secretary Matt Hancock tweeted that the decision was completely avoidable and a “massive wake-up call”, adding: “Across life sciences, data, AI, clinical trials & other industries of the future, we are squandering a lead, failing to capitalise on the global success of our vaccine programme.”

John Redwood, a member of Parliament for the ruling Conservative Party, also said the announcement showed how damaging the government’s tax policy was and that “high taxes destroy jobs and result in less tax revenue”.

This row comes ahead of the government’s spring budget, which is due on March 15. Chancellor Hunt has already said there are unlikely to be any significant tax cuts in that announcement.

The UK’s corporate tax rate has been something of a political football in the past year. In March 2022, the Boris Johnson government announced a planned rise from 19% to 25% before it was dramatically reversed under Prime Minister Liz Truss in September last year.

Just before Truss departed office a month later, Hunt reinstated the 25% headline rate, saying it would generate around £18 million a year in revenue.

more across site & shared bottom lb ros

More from across our site

Canadian Prime Minister Mark Carney and US President Donald Trump have agreed that the countries will look to conclude a deal by July 21, 2025
The firm’s lack of transparency regarding its tax leaks scandal should see the ban extended beyond June 30, senators Deborah O’Neill and Barbara Pocock tell ITR
Despite posing significant administrative hurdles, digital services taxes remain ‘the best way forward’ for emerging economies, says Neil Kelley, COO of Ascoria
A ‘joint understanding’ among G7 countries that ‘defends American interests’ is set to be announced, Scott Bessent claimed
The ‘big four’ firm’s inaugural annual report unveiled a sharp drop in profits for 2024; in other news, Baker McKenzie and Perkins Coie expanded their US tax benches
Representatives from the two countries focused on TP as they met this week to evaluate progress under a previously signed agreement – it is understood
The UK accountancy firm’s transfer pricing lead tells ITR about his expat lifestyle, taking risks, and what makes tax cool
Dolphin Drilling intends to discuss the final liability amount and manner of settlement with HM Revenue and Customs
Winning the case against the 20% VAT imposition was always going to be an uphill challenge for the claimants, UK tax advisers argue
A ‘paradigm shift’ in Chile’s tax enforcement requires compliance architecture built on proactive governance, strategic documentation and active monitoring of judicial developments
Gift this article