City of London 'still biggest tax contributor'

Thursday, 16 December 2010 12:00

Financial services firms based in the City of London contribute more to the exchequer through tax than companies in any other sector, according to a new report.

The study by PricewaterhouseCoopers shows that in the 12 months to the end of March, the industry paid £53.4 billion in charges and duty.

That amounted to 11.2 per cent of the government's total tax receipts for the year.

Corporation tax payments fell from £7.6 billion to £5.6 billion, but financial services remained the largest contributor to Treasury coffers, ahead of North Sea oil and gas companies.

The British Bankers' Association claimed the study underlined the contribution its members make as both taxpayers and employers.

In a statement, the industry body said: "We fully understand our responsibility to society and are determined to play a full role in the UK economy's recovery by continuing to support our individual and business customers."

The report follows the publication of statistics from the National Audit Office, which showed taxpayer-funded support for British banks was worth £512 billion at the start of December.

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