Published: July 29th, 2016 in Budget/Finance News
A recent report examining trends and patterns within UK taxation has revealed that London is by far and away the biggest contributor to tax payments on a national, geographic level.
The study, conducted by the Centre for Cities group, considered sixty-two cities in its assessment and it will come as no surprise that London tops the poll. However, the fact that London generates 30% of the Treasury’s finances, thus dwarfing the combined total of the next thirty-seven cities, may be more shocking.
Whilst this provides firm evidence of London’s booming economic growth over the last ten years, other areas have shown little development. Figures from this report suggest a level of stagnancy throughout the rest of the country. London’s contributions grew by 25%, compared to a 1% increase in Manchester. The rest of the cities examined, including notable areas such as Leeds, Glasgow and Birmingham all decreased in terms of growth.
This evidence that the country is becoming increasingly reliant upon one geographical area raises concerns amongst many; surely an “eggs-in-one-basket” economy cannot be good for the country as a whole? A more diverse contribution of tax from all corners of the country could help share the burden and calls to promote regional hubs for business in cities around the Midlands and North-West are likely to be intensified by these statistics.
Imbalances across the UK economy are likely to become even more topical and pivotal following the vote to leave Europe. As Britain begins to stand on its own two feet and re-establish itself as an international powerhouse, a prosperous and well balanced economy is likely to become more important than ever before.
