25 January 2011
London makes £1.4 billion* net contribution to UK
Exchequer
At the height of the global economic downturn, London continued
to make a substantial contribution to the UK Exchequer and will
play a crucial role in driving the UK economic recovery forward,
according to new research published by the City of London
Corporation today (25 January 2011).
London’s Competitive Place in the UK and Global
Economies, produced by Oxford Economics, highlights that the
capital generates 21% of the UK's total GVA and made a net
contribution of £1.4 billion* in 2009-10 – the only positive figure
among all other regions of the country.
With revenues down and expenditure rising as a result of the
recession, this figure is understandably down on previous years.
However, London’s net contribution to the UK fiscal position is
forecast to rise substantially by 2015/16 with the financial and
business services sector remaining a core driver of growth.
Stuart Fraser, Policy Chairman at the City of London
Corporation, said:
"This report demonstrates London's ongoing importance for wealth
generation at a time when the government is attempting to reduce
the overall UK budget deficit and promote growth across the
economy.
"As home to a uniquely skilled workforce – with an estimated 1.7
million graduates – and the principle gateway for international
trade and investment, London has a vital role to play in leading
the UK’s economic recovery.
"Nonetheless, London – like the rest of the UK – has not escaped
the impact of the global recession and we cannot afford to take our
competitive position for granted. Concerns over higher taxation,
increased regulation, infrastructure issues and immigration need to
be addressed if we are to sustain London's pre-eminence in global
financial and business services.
"As the Prime Minister has acknowledged, it is in all our
interests to encourage growth and prosperity that is balanced
across the UK. London shares a mutually beneficial relationship
with other regions and has a pivotal role in spreading the capital
needed to grow industries in other parts of the UK. This is not a
zero sum game and the capital's contribution to the Exchequer
remains vital to the health of the broader economy."
*The figure of £1.4bn for London's net contribution to the UK
public finances in 2009-10 is the mid-point estimate in a range
from -£2.7bn to £5.5bn.
Ends
Notes to editors
- Download a copy of London's Competitive Place in the UK and
Global Economies from
www.cityoflondon.gov.uk/researchpublications (from
25 January).
- About the City of London: The City of London
supports and promotes the Square Mile as a world leading
international financial and business centre and provides local
government and police services for workers, residents and visitors.
It also provides valued services to London and the nation as a
whole including management of Guildhall Art Gallery, the Barbican
Centre, the Central Criminal Court at Old Bailey, 4,240 hectares of
open space, three wholesale food markets and acts as London’s Port
Health Authority.
- About Oxford Economics: Oxford Economics is a
world-leader in quantitative analysis and rigorous economic
forecasting. Our evidence-based approach to economic analysis helps
businesses, governments and international organisations make the
right investment, policy and market decisions.
- About Stuart Fraser: Stuart Fraser is Chairman
of the Policy and Resources Committee of the City of London
Corporation. View his biography or
download a photo.
Press contacts
James Abbott
Tel 020 7332 1754
Mob 07831 543188
Email
james.abbott@cityoflondon.gov.uk
Sanjay Odedra
Tel 020 7332 1835
Mob 07831 542856
Email
sanjay.odedra@cityoflondon.gov.uk