LONDON (Reuters) – Britain’s financial industry paid a record near-$100 billion in taxes in the year to March, reaffirming its central role in funding the state at a time when its future prospects have been clouded by Brexit.
FILE PHOTO: The sun reflects off a skyscraper in the City of London, near the Royal Exchange and Bank of England, London, Britain, December 2, 2019. REUTERS/Toby Melville//File Photo
The 75.5 billion pounds ($99.2 billion) raised equated to one pound in 10 of all UK tax receipts, the City of London Corporation said in a report on Tuesday, adding that this month’s UK departure from the European Union would impact future contributions.
With Prime Minister Boris Johnson yet to start trade negotiations with the EU he says must be concluded during a transition period that ends in December, the industry is still waiting to see how much direct access it will have in future to the bloc, its biggest export market.
The sector is the economy’s most important, employing 1.1 million people nationwide.
Patchy access could see an acceleration of the minimal moves so far by Britain-based staff of banks, insurers and asset managers to over 300 new hubs set up inside the EU, denting the City’s global role.
“Legislative changes, technological innovation and the uncertainty