Government Incentives set to change from 2014 across UK and Ireland
The Government Incentives landscape in the European Union (EU) is set for sweeping change from 2014. In the UK and Ireland, Corporates have until December 2013 to obtain more lucrative incentives.The EU "Financial Framework 2014-2020" will place new limits on the amount of grant aid member states will be permitted to use to entice Corporate investors, meaning the value of incentives deals potentially dropping by hundreds of thousands of pounds. This will have important implications for Corporates considering setting up or expanding their facilities in nearshore UK and Irish locations.
The EU regulates and caps the awards that member state governments are entitled to offer to prospective corporate investors. This is referred to as "State Aid Intensity". Maximum "State Aid Intensity" – i.e. the maximum award of financial aid that a government may make to attract companies to set up, expand or safeguard an investment – varies from country to country and region to region. In the UK and Ireland, State Aid typically takes the form of job creation or capital grants.
Note: The table above shows incentives available in nearshore UK and Irish locations. For further information on incentives in England please contact Alex Ash.
Timing is crucialEffective July 1st 2014, "State Aid Intensity" levels will come down. This means that the scale and value of incentives deals will drop potentially by hundreds of thousands of pounds.
Given the lead times for processing incentives applications, companies actively considering setting up or expanding in UK and Ireland now have until mid-December 2013 to conclude negotiations and submit applications in order to obtain more lucrative awards.
Find out more about Global Location Strategy and Incentives here.
A representative will be in contact with you shortly.
Need help? Connect with one of our experts. We look forward to helping you with your real estate needs.
Find out more about the range of services we offer our clients.
Business & Location Consulting