Martin Sorrell calls WPP Ireland move 'difficult'

by Staff, Campaign 01-Oct-08, 09:40

LONDON - WPP's chairman, Sir Martin Sorrell, today said that his company's decision to leave the UK for Ireland was a difficult one, prompted by concerns for shareholders.

WPP yesterday announced that it has decided to set up a new parent company in Ireland due to the threat of changes to UK tax law.

The changes could see UK companies taxed on profits made overseas.

Speaking on BBC Radio 4's Today Programme, Sorrell said: "It was a significant economic decision. It is a difficult decision but it was one the board felt it had to make in the interests of shareholders."

Sorrell said that 85 per cent of the company's profits came from outside the UK and that the decision to relocate could save WPP up to £70 million per year.

He added that there would be no threat to the position of the company's 11,500 employees based in the UK.