City is biggest tax payer, and don't you forget it - Saturday 18th December 2010

Article from 16th December Daily Telegraph business news:

"The financial services industry regained its place as the largest individual contributor to Government finances in the latest financial year, according to figures from the City of London Corporation.

"Taxes paid by financial services companies were worth an estimated £53.5bn in the 12 months to March in a report produced by PricewatherhouseCoopers. ....the financial firms (were) the largest contributor to the Exchequer, comprising 11.2pc of the total UK tax take."

North Sea oil was in second place, distribution businesses were third and manufacturing businesses fourth in terms of the contributions to tax revenues.

Importantly, the reported figure does not include the tax paid by financial services professionals subject to the 50pc tax rate or those hit by the bank payroll tax.

Those numbers - £53.4bn, 11.2% - should be on the tip of the tongue for anyone wanting to promote the importance of the City of London to their friends and colleagues. This is what pays for our public services all over the UK (not just in London). If we want to be less dependent on financial services in future, by all means grow other businesses so that they become relatively bigger, but don't let's set out to reduce the absolute size and value-generating ability of the City.