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Good news from Glaxo as new plant is announced

GlaxoSmithKline have unveiled plans to build a new manufacturing facility in Cumbria Photo: ITV Granada

This morning the Chancellor could do with the odd good headline. He's got one at least with the announcement from the pharmaceutical firm GlaxoSmithKline that they will employ another 1,000 people, partly as a result of changes to the tax rules on patents confirmed in the Budget yesterday.

George Osborne as a result has been claiming this success in his interviews this morning. The 'patent box' as it's known, which in very simple terms shields firms from paying lots of tax on some new innovative products, has however been a very long time coming. It was first put forward in 2009 by the previous government. It then took a while for this government to commit to it. So while it clearly is a filip for the pharamceutical industries, George Osborne would be rather cheeky to claim it as an overnight success.