Starbucks denies tax talks

Starbucks yesterday said it will continue with its plan to open 300 new British stores by 2016, as it denied reports it has threatened to withhold UK investment in retaliation for government attacks over tax avoidance.

The coffee chain said it "remains fully committed to opening 300 new stores and creating 5,000 new jobs by 2016".

Starbucks renewed its commitment to British expansion following reports its UK boss angrily stormed into No 10 Downing Street, after the prime minister appeared to single out the coffee chain during a speech attacking multinational companies' tax avoidance.

Newspaper reports said Starbucks UK MD Kris Engskov  had threatened to withhold £100m of investment in the UK if Cameron continued to single out the coffee chain in the tax avoidance debate.