Starbucks finally agreed to open 300 new stores after reportedly refusing to, due to David Cameron’s public attack of the chain for tax avoidance. It is reported that “By 2016, Starbucks is committed to opening 300 new stores and creating at least 5,000 new jobs.”
After the Prime Minister gave his speech and attacked the company for avoiding taxes, Starbucks UK boss angrily stormed to Downing Street No 10. According to the Sunday Telegraph, Kris Engskov, the director of UK Starbucks, stated that they had threatened to hold hostage an investment of £100m if Cameron continued to attack the coffee chains tax avoidance quarrel.
Last week in Davos, a speech was given by Cameron where he issued the statement that companies need to “get up and smell the fresh coffee.” When Cameron was asked whether or not the statement was implying Starbucks, a spokesperson from No 10 stated “the speech was speaking for itself.”
Starbucks said that the former helping hand to Clinton when he was president, Engskov, formed very constructive discussion with the officials of Downing Street on Friday, but clarified that the meetings were just long scheduled and had nothing to do with Cameron’s attacking of Starbucks.
The US coffee giant, which has clearly not paid not even a single penny to UK for corporation taxes for the prior three years stated that, “The Prime Minister and Starbucks agree that all business should pay their share in taxes. Every hard working person who works all day or all night from scratch to success pays their taxes and the same goes for everyone else.”
Cameron’s well thought out speech has already angered many big businesses, and as Goldman Sachs says, his criticism was basically criticising those men and women that work hard every day and have money ripped from their hands from taxes.