Texas to Open Office in London to Lure Businesses

Texas is taking its business-friendly pitch overseas, opening a London office aimed at pulling investment and jobs from the United Kingdom to the Lone Star State.

The outpost, approved this month, marks Texas’ latest push to globalize its economic development strategy, building on efforts that have already drawn companies from higher-tax U.S. states. The Guardian reported that officials tied to Gov. Greg Abbott are now targeting the city of London’s deep bench of financial firms, hoping to extend a streak that has helped Texas surpass California in Fortune 500 headquarters.

The London office will be staffed by lobbyists tasked with selling a familiar package: no state income tax, no corporate tax and a lighter regulatory touch. They’ll also tout newer offerings, including specialized business courts designed to fast-track corporate disputes, along with multimillion-dollar incentive packages aimed at large employers, according to the outlet.

The move coincides with Dallas and Austin moving to position themselves as alternatives to legacy coastal hubs. Dallas, in particular, has focused on its growing financial sector with “Y’all Street,” as it seeks to attract banks, asset managers and trading firms priced out of New York or wary of London’s shifting post-Brexit landscape, according to the publication.

Texas’ ambitions haven’t gone unnoticed, as the City of London Corporation is already in talks with state officials. London Mayor Sadiq Khan visited Dallas earlier this year to explore ties ahead of the planned launch of the Texas Stock Exchange, according to the publication. The bourse, expected to debut later this year, is being pitched as a new venue for dual listings, potentially linking U.K. firms with U.S. capital while giving Texas another tool to court international business.

The expansion highlights intensifying competition among global cities for both companies and capital. London has struggled to stem a wave of firms delisting or shifting listings abroad, according to the outlet, while Texas is doubling down on incentives and branding to capture that drift.

State officials say the new office builds on an existing international presence that includes Mexico and Taiwan, and reflects growing demand from overseas companies exploring relocations. Local economic development leaders claim interest is already coming from manufacturers in Europe and Asia.

— Eric Weilbacher