Boost for Britain as McDonald’s announces it will move its international HQ here after Brexit
The fast food chain will up its non-US base from Luxembourg to the UK and will pay millions to the Treasury in taxes
MCDONALD'S is to move its international HQ from Luxembourg to London in a huge boost for Brexit Britain.
The fast food chain will shift its operations to the UK and is expected to pay millions into the Treasury in taxes as a result.
The chain said that it had decided it was relocating before the referendum vote and that "these strengths are unlikely to change as the UK negotiates leaving the European Union."
The firm has said that unemployment would increase if Britain left the EU.
But little more than a month after the vote the company had changed its tune and unveiled plans to create 5,000 jobs in Britain and overhalf 1,250 restaurants.
McDonald's makes two thirds of its money outside America and the move is a huge boost for trading relationships once Britain leaves the bloc.
A growing list of companies are committing to the UK post-Brexit - several FTSE 100 companies such as HSBC have confirmed they will stay based here.
The move was welcomed warmly by the Prime Minister's spokesperson, who said it would help in "securing growth and increasing jobs".
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The company said it had chosen Britain because of the "significant number of staff" it has in London already.
The burger giant said the move would make its operations more efficient.
"This unified structure will be administratively simpler and will reduce expenses and enhance flexibility," the firm said.
The move comes after the European Commission began a formal investigation into Luxembourg's tax deal with McDonald's on Tuesday, suspecting that it may have broken state aid rules.
It said that since two tax rulings given by Luxembourg in 2009, a McDonald's subsidiary had effectively paid no corporation tax, despite recording substantial profits.