WIREDGOV

The CBI commented on the publication of a report by UK Finance and based on analysis by PwC which highlights the significant contribution of the banking sector to the UK public finances.

Flora Hamilton, CBI Head of Financial Services, said:

“We welcome this new report which demonstrates the significant contribution of the banking sector to UK plc. It highlights the importance of a strong financial services sector that enables economic growth across the whole country whilst providing jobs, investment and taxation revenues.

“Whilst the UK remains a global hub for financial services, this position cannot be taken for granted. We need stable, simple and certain taxation for this critical sector as it faces up to new challenges beyond Brexit. More immediately, all businesses need the certainty of a transition deal between the UK and the EU agreed by the end of the year to avoid a “cliff edge” and to protect jobs and investment.”

The report cites that total tax contribution of the banking sector to the UK public finances in 2016/2017 rose to an estimated £35.4bn (5.4% of total government tax receipts) from £34.2bn in 2015/16, with employment taxes remaining the largest tax for the banking sector. It finds that the sector creates employment for 1.6% of the UK workforce whilst contributing 7.2% of all UK employment tax receipts.