Almost one in four (23%) global businesses are open to relocating
their headquarters (HQ), but uncertainty over Brexit is having a
significant impact on the UK's attractiveness as a home for big
firms, according to new research from international law firm,
Gowling WLG.
Almost half (41%) said they wouldn't currently consider a move to
the UK post-Brexit, instead rating Germany, Ireland and
Switzerland as the top destinations.
With recent high profile HQ developments for Amazon, Unilever and
Google hitting the headlines, the Gowling WLG report, HQ Sweet
Spot: Where big businesses want to call home reveals the
strategic plans for the most significant operations of more than
650 board level executives at large businesses across Europe, the
Middle East, Asia and the Americas.
A startling 92% of those surveyed that are currently
headquartered in the UK are weighing up the benefits of an
overseas move - Ireland ranks as the most popular destination
option for more than half (54%) of these firms, followed by
Germany (33%), the Netherlands (31%) and Luxembourg (23%).
More than a third (35%) of global business leaders believe that
post-Brexit, the UK will be a less favourable HQ location in the
long-term. However, bosses in Brazil, Canada and the US are most
upbeat about the enduring cachet of a UK business address and the
most likely to consider relocating to Britain.
When asked to rank a broad range of features from availability of
talent and digital infrastructure through to political and
economic stability in their current location, business leaders in
France, Singapore, Switzerland and Japan were the most satisfied
and least likely to consider moving. Conversely, those in the UK,
Canada and Brazil were the least satisfied with their current
home and among the most likely to consider upping sticks.
Commenting on the findings, Richard Bate, head of real estate at
Gowling WLG, said:
"The UK patently remains a strong force in the market to attract
the world's biggest HQ relocations but our research shows that
Brexit is leading global bosses to strongly consider other
European alternatives.
"When asked what measures the UK could take to improve its
attractiveness as an HQ location after Brexit, a clear message
from bosses for policymakers emerged: reduce business regulation,
improve access to talent, develop a more favourable tax regime
and improve transport links.
"Our research also reveals the importance of the location basics,
from sourcing suitable buildings to excellent digital and
transport infrastructure. Indeed, many of our respondents favour
destinations offering high quality real estate – an area where
the UK excels.
"Against this backdrop, a swift resolution to the Brexit impasse
and the right policy changes once we have finally exited the EU
are essential to enable Britain to take a bigger slice of the HQ
market, particularly among North American firms and those beyond
Europe."
Visit https://gowlingwlg.com/en/topics/hq-sweet-spot/overview/ to
download the full report.
