City generates nearly £100bn in taxes |
Research by lobby group TheCityUK reveals that the City generated nearly £100bn in taxes last year. For every £100 in taxes, the financial, legal and accountancy sectors contribute nearly £13. The report shows that the accountancy and legal sectors alone yielded £20.5bn in taxes for the public coffers, a 5.4% increase on two years ago. The growth of these sectors has consistently outpaced the rest of the economy’s growth, with legal and accounting’s gross value added, a measure of output, rising 27.8% between 2011 and 2020 compared to 5.3% for the wider UK economy. Anjalika Bardalai, chief economist and head of research at TheCityUK, said: “The relative resilience of the legal and accounting sub-sector make it well-placed to make a strong contribution to the UK’s post-pandemic economic recovery.” The analysis shows that 755,800 people (2.3% of the UK workforce) are employed in the legal and accounting sectors, with partners estimated to be paying £5bn in taxes.