Capital generates substantially more capital for the UK. Capital!

London's contribution to the public purse doubles, according to new data from the City of London Corporation and Oxford Economics.

by Rebecca Burn-Callander
Last Updated: 19 Aug 2013

The Greater London economy stumped up £10bn more in tax revenues than it received in 2011-12, reveals the report by the City of London Corporation and Oxford Economics. That's up from the £5.1bn surplus last year. Great news for the nation's coffers.

These extra billions have been generated by the London 2012 Olympic Games, the Queen's Jubilee, and, surprisingly, a rise in City jobs. It appears that many law firms and accountants in the Square Mile have been increasing their headcounts this year. So, despite all the banking cuts, the number of City jobs now stands at about 398,000, a 3.2% year-on-year rise.

The report predicts a further resurgence in London's financial services sector over the coming years. Almost 80% of the new jobs generated in London between now and 2025 will be in the professional and financial services industries, it posits, compared to just less than 60% between 2000-12.

The steep rise in the amount of VAT - up from £16bn to £17.2bn year or year - generated within the capital has also helped to plump up the UK's tax take by 18.5%.

However, London is also becoming increasingly expensive to run. It accounted for 26.8% of the UK's transport spend mostly due to expensive infrastructure projects such as Crossrail (Boris' transport wheeze), the Thameslink upgrade and improvements to the London Overground network.

Nevertheless, by 2025, the London’s fiscal surplus is still forecast to grow to just over a whopping £50bn. Go, London! Go!


Find this article useful?

Get more great articles like this in your inbox every lunchtime

Upcoming Events

Latest on MT

Meet the entrepreneur who keeps skyscrapers in shape

Meet the entrepreneur who keeps skyscrapers in shape

Niel Bethell's building maintenance business High Access has just raised £3.3m.

What are the ingredients of the perfect C-suite?

What are the ingredients of the perfect C-suite?

Harmonious dissonance in the boardroom can be a good thing, says Dean Stamoulis.

The business of golf has landed in the rough

The business of golf has landed in the rough

EDITOR'S BLOG: Adidas and Nike are getting out after conditions turned sub-par.

5 point guide to safeguarding your business

5 point guide to safeguarding your business

SPONSORED: Beef up your data security with these top tips.

Cheat sheet: restore your company's good name

Cheat sheet: restore your company's good name

The much maligned Sports Direct is opening its doors to the public. How else can you regain your reputation?

Uber drivers and cabbies are both set for the scrapheap

Uber drivers and cabbies are both set for the scrapheap

One day the fierce rivalry on London's roads will be consigned to history by self-driving cabs.