American coffee chain Starbucks, implicated in the recent corporation tax scandal, have bowed to public pressure and announced that they will pay £10m in tax over the next two years - the first of the U.S multi-nationals to make a public climbdown.

Kris Engskov, managing director of Starbucks UK, said that public anger and demonstrations outside Starbucks outlets "has taken us a bit by surprise", perhaps suggesting sales had suffered in the aftermath of MP's questioning and consumer revolt.


Engskov promised that even if the company failed to make a profit in the UK, Starbucks will still deliver the unprecedented payment to HM Revenue and Customs.

In a speech to the London Chamber of Commerce, the statement read:

"I am announcing changes which will results in Starbucks paying higher corporation tax in the UK – above what is currently required by law. Specifically, in 2013 and 2014 Starbucks will not claim tax deductions for royalties or payments related to our intercompany charges.

"In addition, we are making a commitment that we will proposed to pay a significant amount of corporation tax during 2013 and 2014 regardless of whether our company is profitable during these years.

"These decisions are the right things for us to do. We've heard that loud and clear from our customers."