Drinks giant Diageo has rejected an offer to relocate to Switzerland and make 200 of its top executives exempt from paying income tax.

The Swiss canton of Zug attempted to lure the Guinness brewer with favourable corporate tax rates.

The offer is believed to be one of a series of similar proposals it has received in recent months and comes with income tax for top earners in the UK set to rise to 50% from April.

A spokesperson for Diageo said the group continued to see "many advantages of remaining a British-domiciled company", but warned that the UK government needed to take steps to keep the country competitive for business.

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