Thursday, December 22, 2011

The Cost of Accepting a Job in London

In pictures: The world's 20 most expensive cities to buy property

When does it become a competitive disadvantage to businesses thinking of locating in London how much they have to pay staff just to result in enough post tax to consume housing?

Posted by ontheotherhand @ 01:50 PM (1555 views)
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5 thoughts on “The Cost of Accepting a Job in London

  • If it stands true that it is just tax and the cost of housing holding back the economy then Ireland should be doing quite well in the near future.

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  • The UK welcomes financial criminals – that’s why.

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  • @2 hpw

    Ha Ha! That’s the truth, isn’t it?

    Endless laws on money laundering, but the UK Government contrives the rules to suit! The more you have, the less you pay.

    Desperate Dog rules.

    It’s going to be an eye-opening year!

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  • Come on, this is simple stuff. House prices are dirt cheap in South Wales or Stoke-on-Trent, but you don’t see investment banks rushing to relocate there. Other non-banking international corporations choose to have their offices in London despite the high house prices. The ONS faced a lot of grief from staff when they chose to relocate to Newport;; after all, for a skilled statistician, there is no opportunity to progress your career by changing jobs if you live in Newport.

    Houses are even cheaper in Poland, but few global companies base themselves there.

    As a city London has a lot to offer a global business: the two main factors being the international airports and the vast pool of skilled workers, many with international experience. Domestically-focused companies are less likely to base themselves in London because they don’t need to; but even then the lure of the existing pool of skilled workers is strong. London’s sheer size causes a gravitational pull for both workers and companies.

    For wealthy foreigners – CEOs, executives – the nom-dom tax rules give London preference over other parts of the world. Switzerland has similar rules, and it too is home to many global corporations despite having even higher salaries than London.

    The English language is a strong draw too. Swiss German is not the most accessible of tongues.

    Last but not least, entry-level workers don’t make the decisions. The boss and his wife who have lived in London for 20 years, who have all their friends and social activities in London, whose kids go to school and have friends in London – good luck convincing those guys to move to Grantham or Gdansk.

    In answer to your question, when does it become a competitive disadvantage for London? It already is; but house prices (and the consequent high salaries) are just one factor in weighing up a decision. All the other factors – airports, skilled workers, presence of other large companies, English language, nom-dom, international environment – are more important.

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  • @4. great comments

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