This blog may be small but the message could not be bigger. What would happen to the City of London, and therefore the whole of the UK, if there was no Financial Services Industry?
Are there any good reasons why the Government should support and encourage Financial Services?
Lets start with the big one, £65 billion in tax for the year to 31 March 2013, sounds like a good reason.
PWC have provided a report to the City of London on the tax contribution of UK Financial Services and it highlights some interesting statistics. The £65 billion makes up 11.7% of total tax receipts for the Government. Corporation tax remains the third largest tax and with 1.1 million people employed in this sector, nearly 4% of the working population, income tax and national insurance are also major contributors.
Now can anyone guess which sub sector of the industry pays the highest share from those that are part of this survey? Banks. They may not be on everyone’s Christmas card list but perhaps HMRC will be sending some out this year.
Now I am not a tax person but the report makes great reading and is really well put together. I have included a link so that those who are interested in the detail may explore it further at their leisure. If you do decide to read through the report, and if you are yourself connected to International Financial Services, consider the value to the City of London, and the UK, of jurisdictions such as the Isle of Man who continue to place business and provide support to those UK Financial Service businesses that last year paid £65 billion in tax.
Surely an industry worthy of support, particularly given how mobile it can be.