The government is considering plans that could force businesses to pay an "exit tax" if they move abroad after spinning out of UK universities.
Ministers want to discourage companies that benefit from taxpayer support from taking valuable intellectual property and jobs overseas.
Lord Vallance, the former science minister and current chairman of Andy Burnham's AI taskforce, is said to be leading the proposal.
According to The Sunday Times, the levy would be based on a percentage of a company's valuation if it sells or floats overseas.
The plan is understood to be part of government attempts to stop an exodus of high-growth companies and ensure the UK taxpayer gets value for money. However, it is unclear how the exit tax would be enforced, other than building in a levy when state support is agreed.
A Centre for Cities report published last year found that about 4% of spinouts from UK universities have moved abroad in recent years.
There are concerns that such a tax could create a barrier to some firms receiving support.
Sterling Furniture Group continues to strip out costs in the business after reporting another yearRead More
Two of Scotland’s chambers of commerce have urged Andy Burnham to introduce English-style devolution inRead More
This site uses Akismet to reduce spam. Learn how your comment data is processed.
