Figures released by the City of London Corporation shows that despite considerable business uncertainty over the last year, the tax contribution made from the UK financial sector has remained broadly steady at an estimated £75.5bn – a small increase from last years’ £75bn. That accounts for more than £1 in every £10 paid to the government.
This reinforces the importance of the sector to the UK’s economy, this represents 10.5% of all government receipts for all taxes – equivalent to nearly half of Government spending on health.
Employment taxes continue to be the largest component of the tax contribution, with taxes generated by banks particularly dependent on the location of their jobs. New data looking at challenger banks for the first time also highlights the role technology can play in supporting productivity.
The total tax study, now in its twelfth year, emphasises the significant and stable contribution in taxes from the sector to support the wider economy and public services – click here for more information.
These figures emphasise the important role the City of London and other financial services hubs across the UK play in supporting the UK economy.
Looking at Brexit it is important the UK and EU continue to work together after to ensure both our services sectors can prosper and protect mutual access between our highly interconnected financial services sectors, while aligning with global standards to prevent unnecessary fragmentation.