Why are Multinational companies moving to London?
One of Japan’s biggest businesses has announced it is moving its global HQ to London. With Hitachi’s decision being seen as a huge vote of confidence in the capital, Clarendon asks why so many are attracted to London.
The recent news that Hitachi, one of Japan’s largest tech firms, is moving its global headquarters to London has been welcomed as a boost to the capital’s economy and its corporate reputation. The firm announced its decision after it was awarded a £1.2bn deal to build a new fleet of intercity trains at its new factory in the North East.
The move is part of a growing investment in the UK by Hitachi who last year created 750 new jobs at their Durham factory. Although they will continue to run the Japanese arm of their business from Tokyo, worldwide focus will stem from London.
What attracts major international businesses to the UK capital? Working with many business travellers, Clarendon has seen the growth of corporate commuters using London either as a temporary or permanent base, keen to utilise its skills and infrastructure. So why do they come?
1. Competitive tax – From 2015, Corporation Tax will be reduced to 20%. This is very competitive compared with other financial and global business hubs and offers a major incentive for business. The rate ensures the UK has the lowest Corporation tax rate in the G7 and the joint lowest in the G20. It provides firms with a good economic reason to move to the capital.
2. Transport links – OK so many London commuters will complain about their morning commute but in fact London has one of the best transport infrastructures of a major international city. It’s easy to use the tube network to travel across the capital and with continuing investment in HS2 and Crossrail it is set to improve. Travelling outside of the capital to the UK’s other major cities like Birmingham, Manchester and Liverpool is also reliable and fairly speedy.
3. High productivity – London workers consistently top polls of the most productive workers in the UK. This may be because workers in the capital tend to be younger (the average age is 33) and productivity tends to be higher when we are younger but it contributes significantly to London’s high GVA.
4. Work hard, play hard- There’s a philosophy in London to enjoy time out of work just as fervently as you do during business hours. There are great attractions across the capital as well as bars, restaurants, theatres, and major artists often play key dates of their tours in London. Enjoying your time outside of work heightens your enjoyment of work itself. Employees feel more inspired, content and have a more positive work/life balance. This boost creativity, commitment and inspiration. What employer wouldn’t want that?
For over 26 years Clarendon has been providing serviced apartments across London and has continued to expand its portfolio primarily because of the attractions to living and working in the capital. Proximity to a travel infrastructure as well as the capital’s attractions are a major deciding point when Clarendon opens a new development, ensuring workers can have as much fun in the capital outside of working hours as they do in the office. London is a vibrant city and we aim to offer as much choice and a chance to enjoy as much as possible at our locations in The City, Canary Wharf, the West End