STOP ABUSING CITY WORKERS
STOP ABUSING CITY WORKERS
- Workers in Square Mile now pay as much tax as the entire Scottish workforce
- City paying for entire armed forces wage bill and aid to sub-Saharan Africa
The Citys workers contributed 11bn to the public purse last year through income tax and national insurance, according to research from Ambition, the global boutique recruiter.
In the tax year 2010/2011 the amount of income tax and NI contributions paid by staff working in the City was the equivalent to the tax paid by the entire Scottish workforce (11bn). Scotlands contributions to the treasury were 366,000 per square mile, 0.003% of Londons Square Mile. There are nearly 422,000 workers in the City and Canary Wharf with an average remuneration of 78,490.
The amount paid by City workers for the year 2010/2011 is the equivalent to the total spent by the UK government in 2009/10 on winter fuel payments (2.7bn), TV licences for the over-75s (0.6bn), the entire wage and pension bill for British armed forces (5.5bn), and aid in sub-Saharan Africa (1.7bn), with 500m left over.
Income tax and national insurance contributions for the whole of the UK totalled 157bn for the tax year 2010/2011 with City contributions making up 7% of the total despite the City workforce only making up 1.4% of the UK total. The total number of people employed in the UK is estimated to be over 29m, with the average salary currently standing at 23,556.
Simon Lynch, managing director of Ambition UK, commented: The City has received a torrent of abuse over the last three years but its time people woke up to how valuable a contribution its workers make to the public purse. Not everyone in the Square Mile works in a bank or walks away with a multi-million pound bonus. City workers come from an array of industries from law to accountancy, property to marketing and the amount they pay in tax goes a long way to help fund critical parts of the governments expenditure. Whats more, 11bn doesnt even come close to the overall sum the City pays in tax. Corporation tax, the levy on bonus pots and employers NI add a significant amount to the total haul the treasury receives.
In addition to income tax and national insurance, workers in the City have also contributed a significant amount to the public purse through VAT paid on their lunch. Workers in the City spend an average of 15.75 per week on their midday meal and this has generated an additional 62.5m to the exchequer through VAT payments.
Simon Lynch, continued: The City is famous for its lunchers and with the amount of VAT thats generated from them the treasury will be pleased with the decision to raise the rate to 20%. However, its going to take more than a few lunches to reduce the deficit. The time to stop bashing the City is well overdue, if the UK is to get out of the hole its in it needs a strong, dynamic and healthy City economy to help drive growth throughout the rest of the country.