Recently the press was awash with MPs decrying Amazon’s low corporation tax bill with many of the paper’s own editorial stances being derision that a company with such a large turnover could contribute so little to the country’s tax income.
People seem to forget that Corporation Tax is paid on profits and Amazon‘s voracious appetite for growth is matched by their explosive expansion and for those who dislike their low tax contributions there’s a bit more bad news out today. Amazon have announced plans to open a new fulfilment centre in Bristol in 2018 and it’s going to cost a ton.
The new depot will help the economy through creating more than 1,000 new permanent jobs in the local area, each of which will add to income tax, National Insurance contributions and 1,000 people with money in their pockets which doubtless will be spent on many many things all subject to VAT.
There’s at least on politician who’s happy and isn’t shouting about Amazon’s latest investment reducing Corporation Tax liability. The local MP sounds pretty stoked at the opportunities coming to the Bristol area.
“It is fantastic news that Amazon is opening a new fulfilment centre in Severn Beach. This will bring more jobs to our area and offer careers with training opportunities, helping the local economy to grow. An international outward looking company like Amazon will help us maximise the fantastic opportunities for our region after Brexit. I look forward to visiting the site in the future when it’s operational to learn more about Amazon’s ambitions for Severn Beach area.”
– Jack Lopresti MP
Even 1,000 jobs won’t be enough to keep the new depot working, the Bristol site will be fitted out with advanced Amazon Robotics technology (Kiva). The robots slide under a tower of shelves where products are stowed, lift it and move it through the fulfilment centre.
Amazon previously announced that it will open fulfilment centres in Dunstable, Doncaster, Tilbury and Warrington in 2017, creating more than 3,500 new permanent jobs. The Daventry site opened in February while Doncaster, Warrington and Tilbury will begin operations in the autumn.
Amazon currently has 13 fulfilment centres in the UK. As well as the recently opened Daventry site, there are two fulfilment centres in Doncaster and one each in Coalville (Leicestershire), Dunfermline, Dunstable, Gourock, Hemel Hempstead, Manchester, Milton Keynes, Peterborough, Rugeley and Swansea Bay.
The 1,000 new jobs that will be created in Bristol from 2018 are in addition to the 5,000 new permanent roles that Amazon is creating this year, bringing its total workforce to 24,000 across its head office, three development centres as well as its fulfilment and customer service centres by the end of 2017.