It is a topic a lot of Boards have been considering for a variety of reasons. For much of the 1990s, the UK was the location of choice. Over time this has changed and we are now seeing many inbound groups looking to places like Ireland.

Why is this happening? One reason is that many countries now have a lower tax rate than the UK. Moreover, the UK tax system is complicated, with the Government clamping down over the last few years on what many other jurisdictions consider to be legitimate tax planning. In recent consultation processes it does seem that the Government is listening to taxpayers.

There are however many positive reasons why groups continue to remain in and invest in the UK. On the tax front, the UK corporation tax rate is lower at 28 per cent than most West European countries and significantly lower than the US.

There are proposals for overseas dividends received in the UK to be non-taxable. Enhanced deductions are given for spend on energy and water saving technologies as well as research and development.

In addition, the UK is English speaking, in a time zone between other time zones. It provides a foot hold into the Western world, and the UK brand still counts for something at a global level. Exchange rates were until recently a significant issue for exporters, however this seems to have reversed with the UK looking a more an attractive prospect. Within the UK, Yorkshire has specific attractions and is becoming increasingly attractive to the labour market as a place to live and work. Attractions include strong university research departments, a relatively cheap cost base, good infrastructure, a flexible work force and sector leading technology such as advanced manufacturing and titanium technology.

In terms of business opportunities, many of the UK's biggest companies choose the Yorkshire region as the place to be. The region has more than its fair share of major businesses including household names such as Wm Morrison Supermarkets, Asda/Wal-mart and HBOS to name just three.

Some parts of Yorkshire have seen dramatic change in recent decades. But it is fair to say that much of the region has developed new industries and more focused versions of the old ones. Sheffield may no longer be the largest producer of steel in the world, but it still has a significant number of very successful energy companies.

Looking at grants, the UK government spends approximately £2.5bn a year on grants and support to businesses. Yorkshire has a number of grant areas. For instance, Yorkshire Forward administers a recently introduced research and development support scheme for large companies.

This is an important boost for the region and sets Yorkshire aside as a location where both large and small businesses can attract significant research and development support.

While the current economic difficulties make attracting investment to the UK difficult, Yorkshire is well placed as a region in an increasingly competitive market to compete for inbound investment.

For further information, please contact Honey Caseldine, senior manager in the Inbounds team at Pricewaterhouse Coopers LLP in Yorkshire on 0113 288 2348 or email honey.caseldine@uk.pwc.com