Financial services ‘paid more than 12% of total tax take’

FINANCIAL SERVICES contributed more than 12% of the government’s total tax take in 2010/11, the City of London Corporation has claimed.

An annual study published today said that banks and financial institutions paid £63bn up from £53bn in 2009/10. The report put this down to the one-off tax on bankers’ bonus and the 50% top rate of tax.

The report concluded that it would be tough for Whitehall to rebalance the economy away from the sector.

“We’ve always been supportive of rebalancing,” Stuart Fraser, policy chairman at the City of London Corporation told the Financial Times. “But we believe the way to get there is not by shrinking the financial services industry, but by building up other industries.”

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