Concerned Veritas cuts UK hi-tech investment

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US data management software company Veritas has dramatically scaled down major investment and job-creating plans in the UK because of concern over the UK’s tax policies and investment environment.

Veritas plans to create 2,000 jobs with a $415 million (£250m) project to build a new European headquarters at Reading, England, and a research facility at Watford. But the firm says it would have doubled its investment if it had more confidence in the UK government’s policy on hi-tech industries.

Veritas is particularly concerned about changes to National Insurance policy making contributions payable at 12.2% on stock option gains.

The extra $415 million investment, which would have created a further 2,000 jobs, is to be kept on ice for a year pending any improvement in support for the technology sector from the British government.

The fast-growing software company - the world’s fourth-biggest - has posted a Q2 loss of $172.3m, despite a 77% rise in revenues, largely caused by acquisition costs. The Silicon Valley-based company is worth about $40bn.

Veritas

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