HSBC to keep its HQ in Britain

HSBC has decided to retain its headquarters in London, giving the Government a major boost.

The bank, Britain’s biggest, had been considering relocating to a more business-friendly location such as Hong Kong, but announced on Sunday that it was staying put.

A Treasury spokesman said: “They’ve looked carefully and dispassionately at the facts and confirmed that the UK is the best place to base a global business.”

One of the reasons why HSBC was considering moving was the bank levy, a tax on banks imposed following the financial crisis of 2008. But a softening of the Government’s approach towards banking regulation appears to have swayed the bank’s board to reject a move. The bank, whose board met in London on Sunday, cited Britain’s “internationally respected regulatory framework”, its legal system and skilled workforce in confirming its decision to stay.

George Osborne, the Chancellor of the Exchequer, has promised to reduce the bank levy, which was £5.3billion in the 2015 Budget.

Stuart Gulliver, HSBC’s chief executive, said: “Having our headquarters in the UK and our significant business in Asia Pacific delivers the best of both worlds to our stakeholders.”