Unilever may relocate abroad to save on taxes

11/02/2010

Global detergents and food manufacturer Unilever has threatened to leave the UK if the country continues to hike taxes.

Paul Polman, the brand’s chief executive, says that remaining companies registered in the UK could become “financially unviable” if Labour’s tax plans come into force.

The £25 billion firm employs 9,000 people in the UK and is responsible for iconic British brands including Marmite, Domestos and Hellman’s.

Polman says that the firm is already struggling in the current economic climate and that higher taxes make it too expensive to be based in the UK. He explained, “we already have a tougher economic environment because consumers have less to spend. If, on top of that, we get an additional regulatory or tax environment that would make us non-competitive that would be unfortunate for the UK.”



Polman carries with him a reputation for efficiency drives, which have already seen 40 of Unilever’s top executives losing their jobs. He has also managed to add 16 per cent to the firm’s stock price.

If Unilever was to relocate to a friendlier tax environment, such as Ireland, Switzerland or an offshore jurisdiction, it would be a major blow for the UK economy and the government.