New York

Amazon has cancelled its plans to open a new headquarters in New York City after backlash from local politicians.

Political leaders had agreed to $3 billion worth of financial incentives to bring the retail giant to the city, but those subsidies saw strong criticism from some state and local politicians.

In November, Amazon said it would invest around $2.5bn to create 25,000 high-level jobs at new headquarters in New York and Washington DC over the new couple of decades.

Announcing it had scrapped the plans, Amazon said building a new headquarters required "positive, collaborative relationships with state and local elected officials who will be supportive over the long term".

It added: "A number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with the project we and many others envisioned.

"We are disappointed to have reached this conclusion."

New York Governor Andrew Cuomo and Mayor Bill DeBlasio were the move's biggest supporters, claiming that, despite the $3bn subsidies, it would generate $10bn in tax revenue for the state. And surveys suggested the majority of New York residents supported the idea. However, unions, city councillors and, notably, congresswoman Alexandria Ocasio-Cortez, criticised the decision to offer one of the world's most valuable companies such high financial subsidies.