Cadbury in Swiss move

US food giant Kraft confirmed plans yesterday to restructure iconic British chocolate-maker Cadbury by relocating part of the business to Switzerland, in a move that could reduce its UK tax bill.

Kraft Foods said the reorganisation, which will have no significant impact on UK staffing levels, would see Cadbury integrated into its existing European business model.

Reports emerged yesterday that the changes being implemented by Kraft, which took over Birmingham-based Cadbury earlier this year, were likely to slash its bill for UK corporation tax.

It is understood that Kraft intends to finalise the changes next year, relocating a small number of key roles to its European headquarters in Zurich.

A spokesman for Kraft said: "Since 2006 we have been implementing our European model. The reorganisation has given us greater focus on our priority brands and has helped us grow faster. We are integrating Cadbury into this model. This involves the transfer of certain roles to Switzerland, though the majority of UK-based roles will remain in the UK."