RECORD TAX CONTRIBUTION BY FINANCIAL SERVICES SECTOR

The UK's financial services sector generated a record £75.5 billion in tax to the Exchequer last year, according to a study by PwC on behalf of the City of London Corporation (Daily Telegraph, B5, £; City AM, p1). The report found that financial firms such as banks and insurers accounted for 10.5 per cent of all government tax receipts in 2019, with £33.4 billion paid directly by firms and a further £42.1 billion generated primarily through income tax and national insurance. While the sector employs around three per cent of the UK workforce, it contributed 11.6 per cent of all employment taxes, according to the report.

Responding to the figures, City Minister John Glen said: ?Only by maintaining Britain's world-leading status in financial services can we continue to attract business and bring in record amounts of tax for our vital public services.? Catherine McGuinness, policy chair at the City of London Corporation, said: ?It is only right that the City continues to make a fair contribution to support the wider economy and public services. With Brexit looming, however, the UK must remain competitive to safeguard the sector's employment base and significant tax contribution.?

BUDGET SET FOR 11 MARCH

Chancellor Sajid Javid will use his first Budget on 11 March as an opportunity to ?level up? Britain by boosting the economic performance of towns in the Midlands and northern England according to the Financial Times (p2, £) and The Times (p10, £). Mr Javid will reportedly ?rip up spending rules?, deliver £100 billion in infrastructure investment and give the Treasury a specific focus on narrowing the gap between the north and south.

The BBC (online) reports that the Treasury will "prioritise the environment?, quoting Mr Javid as saying the government will 'take advantage of the record low interest rates that we are seeing, but do it in a responsible way?.

NEWS IN BRIEF

The services sector saw an improvement in activity at the end of 2019, according to the purchasing managers? index from IHS Markit and the Chartered Institute of Procurement and Supply, with business optimism at its highest level since September 2018 (Financial Times, p2, £).

Post-Brexit trade talks with the United States could be held at the same time as those with the European Union, Downing Street suggested yesterday, in a move which could ?increase pressure on Brussels? reports The Times (p2, £).

Morale amongst Eurozone investors has reached its highest in over a year, according to research group Sentix (City AM, p16).

The current system of 43 individual police forces should be restructured as part of an upcoming review of criminal justice, Martin Hewitt, head of the National Police Chief's Council, has told The Times (p4, £).

WHAT THE COMMENTATORS SAY

Writing in the Financial Times (p11, £) technology editor John Thornhill considers the trends which will shape the 2020s. Finance will be ?reinvented? from the 'smartphone user's perspective? by Chinese technology, Mr Thornhill writes. With around 1.7 billion people unbanked around the world, integrated digital services such as mobile payments and e-wallets which are being pioneered in China could provide a cheap and convenient solution. Mr Thornhill also opines on the development of computing power, with the shift to cloud computing and the expansion of 5G networks, while the decrease in the cost of genome sequencing could lead to the development of personalised medicine.

LATEST BLOGS

Philipp von Stackelberg and Rebecca Collier from BCS Consulting blog for us on how the Fifth Money Laundering Directivehighlights the opportunity for banks to leap ahead of the competition.

LATEST VIDEOS

Nick West, Principal, Head of Learning Innovation and Delivery, UK Finance, talks about some of the courses available to book now from our 2020 training schedule.