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Thursday, 22 June, 2000, 15:58 GMT 16:58 UK

UK will be 'Europe's corporate HQ'


Tony Blair
Tony Blair has used his first speech since he was heckled at the Women's Institute to pledge to make the UK "Europe's corporate headquarters".

Speaking to business leaders, Mr Blair promised to continue to attract investors from across the globe to base their businesses in the UK.



We believe Britain can become the European hub of the emerging global economy...in effect, Europe's corporate headquarters. This is our aim
Tony Blair

The prime minister told foreign investors at the London conference of The Global Borrowers and Investors Forum that he was pursuing policies that combine a concern for social justice and "opportunity for all" with a business-friendly tax regime.

He said there was now a "one-off, heaven-sent" opportunity to build a new political consensus, do away with ideological divisions and marry the economic and social agenda.

The prime minister said: "The whole basis of political debate has changed and there's a one-off opportunity to establish a new consensus about political and economic policy.

"The left now accepts there has to be fiscal discipline and the right accepts that investment in people is the only way forward in a successful economy for the future, " he said.

No euro shift

Turning to the vexed question of the euro, Mr Blair insisted that the government's policy had not and would not change.

"In principle we favour joining a successful single currency. In practice the five tests, which include sustainable economic convergence and the effect on the city of London, must be met.

"In the meantime we prepare, so that should they be met, Britain is able to join."

'Bridge to America'

Mr Blair said "we believe Britain can become the European hub of the emerging global economy.

"In Europe, a bridge to America, attracting investment both from Europe and from around the world: in effect, Europe's corporate headquarters. This is our aim."

The prime minister said Britain was Europe's top location for inward investment with more than 25% of all investment into the EU, including more than 40% of all that from the US and Japan.

Digital centre

He said that the UK was increasingly being seen as Europe's digital and e-commerce centre.



Business has joined in the slow handclap
Michael Portillo

Figures being published on 5 July would "further show that the last financial year set new records in terms of new investment, particularly in terms of new start-ups and new jobs."

Mr Blair said the government wanted to reward business people through the tax regime for risk-taking and to put economic reform "right at the heart of the European agenda".

"It is important to emphasise the business-friendly nature of much of the tax reform of the past three years," he said.

'Business support drying up'

Shadow chancellor Michael Portillo dismissed Mr Blair's promises, saying: "Tony Blair's claims to be making Britain a hub of the emerging global economy are risible.

"He's taxed share options, driven away IT consultants, raised tax on multi-nationals, introduced legislation to allow government to read our e-mails, tied business hand-and-foot with regulation, increased the burden of tax faster than anywhere in the industrialised world, and attacked the centres of excellence developing Britain's science future.

"Small and big business have been let down badly by the government. It isn't just the WI that is giving the prime minister the bird.

"Business has joined in the slow handclap. No wonder support for Labour in the business community is drying up."


Related to this story:
Brown 'suppressing' euro debate (21 Jun 00 | UK Politics)
Blair tax spin 'misleading' (21 Jun 00 | UK Politics)
Blair risks fanning euro flames (19 Jun 00 | UK Politics)
Cook joins rift denials (16 Jun 00 | UK Politics)
Brown quashes euro rumours (16 Jun 00 | Business)
Cook sparks euro-rift speculation (15 Jun 00 | Business)


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