GSK Boosts UK Investment After Budget Moves
GlaxoSmithKline has announced plans to build its first new pharmaceutical plant in the UK for 40 years, encouraged by measures in the Budget to boost home-grown research and development.
The nation's biggest medicine maker has selected Ulverston, Cumbria, as the site for the biopharmaceutical factory as it ramps up investment in Britain.
GSK has also confirmed it will invest more than £500m to boost production of key active ingredients for its pharmaceutical products and vaccines across its UK factories.
The figure includes £100m of spending earmarked for its two factories in Scotland, and will create up to 1,000 new jobs across the nation.
GSK said its decision to commit resources in Britain was helped by measures in the Budget to encourage research and development.
The 'patent box' imposes a lower rate of corporation tax on profits generated from UK-owned intellectual property.
The firm's chief executive Sir Andrew Witty said: "The introduction of the patent box has transformed the way in which we view the UK as a location for new investments, ensuring that the medicines of the future will not only be discovered, but can also continue to be made here in Britain."
The company anticipates the projects will benefit the wider economy by boosting the construction industry and GSK's suppliers.
Sir Andrew added that the company is also "actively considering" other investments which would reinforce the nation's international standing as a leader in life sciences.
The Prime Minister welcomed the news of the investment and said it showed the Government's strategy was already working.
David Cameron said: "It shows why we are right to cut business tax and focus on making the UK a dynamic and competitive place that can attract exactly this type of high-tech investment.
"We have a world-class life sciences industry, and I am determined not just to keep it here in the UK but significantly increase it too. We cannot be complacent, the industry is changing, and we must change with it.
"Our innovative life sciences strategy and ground breaking patent box are already making a difference, helping to grow this important industry and ensure the great discoveries of the next decade happen here in British laboratories."
GSK plans to spend £350m on the new Ulverston site, but said it may double the investment "depending on continued improvements in the environment for innovation in the UK".
However construction, which is expected to take six years, will not begin until 2014/15.
:: Meanwhile Britain's high streets have been seeing an improved environment.
Clothing retailer Next reported pre-tax profits in line with analyst expectations of £570m.
Kingfisher, which owns the DIY chain B&Q, saw its annual profits rise by nearly a fifth to £809m.
GlaxoSmithKline has announced plans to build its first new pharmaceutical plant in the UK for 40 years, encouraged by measures in the Budget to boost home-grown research and development.
The nation's biggest medicine maker has selected Ulverston, Cumbria, as the site for the biopharmaceutical factory as it ramps up investment in Britain.
GSK has also confirmed it will invest more than £500m to boost production of key active ingredients for its pharmaceutical products and vaccines across its UK factories.
The figure includes £100m of spending earmarked for its two factories in Scotland, and will create up to 1,000 new jobs across the nation.
GSK said its decision to commit resources in Britain was helped by measures in the Budget to encourage research and development.
The 'patent box' imposes a lower rate of corporation tax on profits generated from UK-owned intellectual property.
The firm's chief executive Sir Andrew Witty said: "The introduction of the patent box has transformed the way in which we view the UK as a location for new investments, ensuring that the medicines of the future will not only be discovered, but can also continue to be made here in Britain."
The company anticipates the projects will benefit the wider economy by boosting the construction industry and GSK's suppliers.
Sir Andrew added that the company is also "actively considering" other investments which would reinforce the nation's international standing as a leader in life sciences.
The Prime Minister welcomed the news of the investment and said it showed the Government's strategy was already working.
David Cameron said: "It shows why we are right to cut business tax and focus on making the UK a dynamic and competitive place that can attract exactly this type of high-tech investment.
"We have a world-class life sciences industry, and I am determined not just to keep it here in the UK but significantly increase it too. We cannot be complacent, the industry is changing, and we must change with it.
"Our innovative life sciences strategy and ground breaking patent box are already making a difference, helping to grow this important industry and ensure the great discoveries of the next decade happen here in British laboratories."
GSK plans to spend £350m on the new Ulverston site, but said it may double the investment "depending on continued improvements in the environment for innovation in the UK".
However construction, which is expected to take six years, will not begin until 2014/15.
:: Meanwhile Britain's high streets have been seeing an improved environment.
Clothing retailer Next reported pre-tax profits in line with analyst expectations of £570m.
Kingfisher, which owns the DIY chain B&Q, saw its annual profits rise by nearly a fifth to £809m.
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