Texas Sets Sights on London Businesses with New Office

The US state of Texas has launched a dedicated London office to attract jobs and investment, touting its low-tax environment and business incentives. This new site is the latest addition to Texas's growing list of international offices, which already include locations in Mexico and Taiwan.

Texas lobbyists, led by Governor Greg Abbott's office, are widening their economic ambitions beyond American borders. They have already had success luring jobs and investment from rival US states, including California, Delaware, and New York. The London office will be led by James Taylor, one of the founders of the Austin-based lobbying and public relations firm Vianovo.

Texas's Economic Ambitions

Texas's economic development efforts are focused on building on the state's existing strengths, including its financial sector. The state is home to a thriving financial hub in Dallas, which has been dubbed 'Y'all Street'. The City of London Corporation has taken notice of Texas's ambitions, with Mayor Susan Langley traveling to Dallas in February to discuss potential opportunities for collaboration.

Langley noted that the launch of the Texas Stock Exchange later this year could provide new dual-listing opportunities for British and Texan firms, connecting them to fresh capital. 'With the launch of the Texas Stock Exchange, new dual-listing opportunities could connect British and Texan firms to fresh capital,' she said.

The London office will offer incentives to UK businesses, including new, fast-track business courts and multimillion-dollar subsidies. Texas's low-tax environment, with no corporation or income tax, is also expected to be a major draw. The state's targets will include the City's banks and investment houses, as well as other industries.

Strong Track Record

Texas already has a strong record of attracting international businesses. Linda McMahon, the head of the Dallas Economic Development Corporation, said that the state is working with companies from around the world, including the Netherlands, Ukraine, China, and Korea. 'I'm working with a company that wants to move manufacturing here from the Netherlands,' she said. 'I met with companies that want to move manufacturing from Ukraine, [and] we've got an enormous amount of Chinese and Korean influence here.'

Strong business lobbying efforts have helped Texas to overtake California in having the largest number of Fortune 500 company headquarters of any American state. The state is home to the headquarters of Oracle, which moved from Silicon Valley to Austin in 2020, and three of Elon Musk's ventures – Tesla, X Corp, SpaceX – all of which moved from California in recent years. ExxonMobil is the most recent win, with the oil company announcing last month it would shift its base to Texas from New Jersey.

A spokesperson for Abbott's office said: 'Texas has long had a global presence, with offices in Mexico and most recently in Taiwan designed to attract foreign direct investment and job creation into Texas, while also helping Texas companies export worldwide.' The spokesperson added that the state looks forward to sharing more information on future expansion soon.