Tory MPs have stepped up calls for the government to cut taxes after pharmaceutical giant AstraZeneca overlooked Britain for a new £320m drug factory.
Sir Pascal Soriot, the firm’s chief executive, said it wanted to build a new plant close to its existing sites in northwest England but “because the tax rate was discouraging” chose Dublin instead.
The UK’s corporate tax rate is due to rise from 19% to 25% in April, while a tax relief scheme for businesses is expected to end and energy support will begin to fall away.
Conservative MP John Redwood tweeted: “AstraZeneca’s decision to invest in Ireland not the UK because our tax rates are too high shows how damaging government tax policy is.
“High taxes destroy jobs and result in less tax revenue.”
Mr Redwood said the new science minister, Michelle Donelan, “needs to tell the Treasury she cannot do her job with high tax rates and additional taxes sending people and money abroad”.
Ms Donelan was appointed during Prime Minister Rishi Sunak’s shake-up of Whitehall this week, which included the creation of a new government department focused on science, innovation and technology.
But Matt Hancock, who was health secretary during the pandemic, said the move by AstraZeneca to build its factory in low-tax Ireland deals a blow to that ambition.
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He tweeted: “This decision was completely avoidable. 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.
“This is a massive wake-up call.”
Chancellor ‘disappointed we lost out this time’
Chancellor Jeremy Hunt today admitted he was “disappointed we lost out this time” in relation to AstraZeneca’s decision to snub the UK.
Speaking to broadcasters from a science facility in central London he said: “We agree with the fundamental case they’re making which is that we need our business taxation to be more competitive and we want to bring business taxes down.
“But the only tax cuts we won’t consider are ones that are funded by borrowing because they’re not a real tax cut. They’re just passing on the bill to future generations.”
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The chancellor warned the UK ‘is not out of the woods’ despite the economy avoiding a recession.
Mr Hunt has continued to resist pressure to cut taxes ahead of his budget next month, after a bleak assessment from the IMF that the UK economy will fare worse than any other advanced nation this year – including sanction-hit Russia.
Dr Richard Torbett, chief executive of the Association of the British Pharmaceutical Industry (ABPI), also called for government action to provide a “level playing field”.
He told BBC Radio 4’s Today programme: “There are more stories about losing investment, like the one we’ve seen with AstraZeneca, than the positive noise stories coming in, and we really have to turn that around.”
Concerns within the pharmaceutical industry have also been focused on the NHS-branded medicines sales levy.
The scheme caps the health service’s branded medicines bill, meaning that drug manufacturers face a charge if it rises more than two per cent annually.
But industry leaders including AstraZeneca are lobbying for change as payments have soared because of rising demand since the pandemic.
Mr Torbett said: “The agreement we have with the NHS – that has got to the point where companies are now paying more than a quarter of their revenues – not profit but revenues – back to the government.
“That is vastly in excess of anything the industry pays anywhere else in the world and we have to get to the point where the UK is able to compete for investment on a level playing field, and we are not there yet.”
The US has announced it has increased its reward for information leading to the arrest of Venezuelan President Nicolas Maduro.
In a statement on Friday, the US treasury said up to $25m is being offered for information leading to the arrest of Mr Maduro and his named interior minister Diosdado Cabello.
Up to $15m is also being offered for information on the incoming defence minister Vladimir Padrino. Further sanctions have also been introduced against the South American country’s state-owned oil company and airline.
The reward was announced as Mr Maduro was sworn in for a third successive term as the Venezuelan president, following a disputed election win last year.
Elvis Amoroso, head of the National Electoral Council, said at the time Mr Maduro had secured 51% of the vote, beating his opponent Edmundo Gonzalez, who won 44%.
But while Venezuela’s electoral authority and top court declared him the winner, tallies confirming Mr Maduro’s win were never released. The country’s opposition also insists that ballot box level tallies show Mr Gonzalez won in a landslide.
Nationwide protests broke out over the dispute, with a brawl erupting in the capital Caracas when dozens of police in riot gear blocked the demonstrations and officers used tear gas to disperse them.
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From July 2024: Protests after Venezuela election results
While being sworn in at the national assembly, Mr Maduro said: “May this new presidential term be a period of peace, of prosperity, of equality and the new democracy.”
He also accused the opposition of attempting to turn the inauguration into a “world war,” adding: “I have not been made president by the government of the United States, nor by the pro-imperialist governments of Latin America.”
Lammy: Election ‘neither free nor fair’
The UK and EU have also introduced new sanctions against Venezuelan officials – including the president of Venezuela’s supreme court Caryslia Beatriz Rodriguez Rodriguez and the director of its criminal investigations department Asdrubal Jose Brito Hernandez.
Foreign Secretary David Lammy said Mr Maduro’s “claim to power is fraudulent” and that last year’s election “was neither free nor fair”.
“The UK will not stand by as Maduro continues to oppress, undermine democracy, and commit appalling human rights violations,” he added.
Mr Maduro and his government have always rejected international sanctions as illegitimate measures that amount to an “economic war” designed to cripple Venezuela.
Those targeted by the UK’s sanctions will face travel bans and asset freezes, preventing them from entering the country and holding funds or economic resources.
Donald Trump has been handed a no-penalty sentence following his conviction in the Stormy Daniels hush money case.
The incoming US president has received an unconditional discharge – meaning he will not face jail time, probation or a fine.
Manhattan Judge Juan M Merchan could have jailed him for up to four years.
The sentencing in Manhattan comes just 10 days before the 78-year-old is due to be inaugurated as US president for a second time on 20 January.
Trump appeared at the hearing by video link and addressed the court before he was sentenced, telling the judge the case had been a “very terrible experience” for him.
He claimed it was handled inappropriately and by someone connected with his political opponents – referring to Manhattan district attorney Alvin Bragg.
Trump said: “It was done to damage my reputation so I would lose the election.
“This has been a political witch hunt.
“I am totally innocent. I did nothing wrong.”
Concluding his statement, he said: “I was treated very unfairly and I thank you very much.”
The judge then told the court it was up to him to “decide what is a just conclusion with a verdict of guilty”.
He said: “Never before has this court been presented with such a unique and remarkable set of circumstances.
“This has been a truly extraordinary case.”
He added that the “trial was a bit of a paradox” because “once the doors closed it was not unique”.
Prosecutor Joshua Steinglass had earlier argued in court that Trump “engaged in a campaign to undermine the rule of law” during the trial.
“He’s been unrelenting in his attacks against this court, prosecutors and their family,” Mr Steinglass said.
“His dangerous rhetoric and unconstitutional conduct has been a direct attack on the rule of law and he has publicly threatened to retaliate against the prosecutors.”
Mr Steinglass said this behaviour was “designed to have a chilling effect and to intimidate”.
Trump’s lawyers argued that evidence used during the trial violated last summer’s Supreme Court ruling giving Trump broad immunity from prosecution over acts he took as president.
He was found guilty in New York of 34 counts of falsifying business records relating to payments made to Ms Daniels, an adult film actor,before he won the 2016 US election.
Prosecutors claimed he had paid her $130,000 (£105,300) in hush money to not reveal details of what Ms Daniels said was a sexual relationship in 2006.
Trump has denied any liaison with Ms Daniels or any wrongdoing.
The trial made headlines around the world but the details of the case or Trump’s conviction didn’t deter American voters from picking him as president for a second time.
What is an unconditional discharge?
Under New York state law, an unconditional discharge is a sentence imposed “without imprisonment, fine or probation supervision”.
The sentence is handed down when a judge is “of the opinion that no proper purpose would be served by imposing any condition upon the defendant’s release”, according to the law.
It means Trump’s hush money case has been resolved without any punishment that could interfere with his return to the White House.
Unconditional discharges have been handed down in previous cases where, like Trump, people have been convicted of falsifying business records.
They have also been applied in relation to low-level offences such as speeding, trespassing and marijuana-related convictions.
Leicester City’s owners have launched a landmark lawsuit against a helicopter manufacturer following the club chairman’s death in a crash in 2018.
Vichai Srivaddhanaprabha’s family are suing Italian company Leonardo SpA for £2.15bn after the 60-year-old chairman and four others were killed when their helicopter crashed just outside the King Power Stadium in October 2018.
The lawsuit is the largest fatal accident claim in English history, according to the family’s lawyers. They are asking for compensation for the loss of earnings and other damages, as a result of the billionaire’s death.
The legal action comes more than six years after the fatal crash and as an inquest into the death of the 60-year-old chairman and his fellow passengers is set to begin on Monday.
Mr Srivaddhanaprabha’s son Khun Aiyawatt Srivaddhanaprabha, who took over as the club’s chairman, said: “My family feels the loss of my father as much today as we ever have done.
“That my own children, and their cousins will never know their grandfather compounds our suffering… My father trusted Leonardo when he bought that helicopter but the conclusions of the report into his death show that his trust was fatally misplaced. I hold them wholly responsible for his death.”
The late Mr Srivaddhanaprabha’s company, King Power, was earning more than £2.5bn in revenue per year, according to his family’s lawyers. The lawsuit claims “that success was driven by Khun Vichai’s vision, drive, relationships, entrepreneurism, ingenuity and reputation.”
“All of this was lost with his death,” it adds.
The fatal crash took place shortly after the helicopter took off from Leicester’s ground following a 1-1 draw against West Ham on 27 October 2018.
The aircraft landed on a concrete step and four of the five occupants survived the initial impact, but all subsequently died in the fuel fire that engulfed the helicopter within a minute.
The other victims were two of Mr Srivaddhanaprabha’s staff, Nursara Suknamai and Kaveporn Punpare, pilot Eric Swaffer and Mr Swaffer’s girlfriend Izabela Roza Lechowicz, a fellow pilot.
Investigators found the pilot’s pedals became disconnected from the tail rotor – resulting in the aircraft making a sharp right turn which was “impossible” to control, before the helicopter spun quickly, approximately five times.
The Air Accidents Investigation Branch described this as “a catastrophic failure” and concluded the pilot was unable to prevent the crash.
The lawsuit alleges the crash was the result of ‘multiple failures’ in Leonardo’s design process. It also alleges that the manufacturer failed to warn customers or regulators about the risk.
Sky News has contacted helicopter manufacturer Leonardo for comment.