The UK legal and accounting sectors contributed £ 20.5bn ($ 28bn) in taxes last year, up 5.4% from 2018, new data has revealed.
A report by TheCityUK said that over the past decade, the growth of these sectors has consistently outpaced the rest of the economy’s growth, and the tax they contributed represented 2.8% of tax revenue. UK totals.
This equates to the combined capital expenditure budgets of the ministries of health, education and housing, communities and local government, “providing a significant and resilient source of revenue for the government that can support its leveling ambitions. “.
“This contribution has become even more striking in light of the economic damage caused by the COVID-19 pandemic,” said Anjalika Bardalai, chief economist at TheCityUK.
“The relative resilience of the legal and accounting sub-sector makes it well positioned to make a strong contribution to the UK’s post-pandemic economic recovery.”
The UK government took almost half (47%) of the money generated in tax form by the two sectors.
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Then come the employees, via wages and salaries up to 33.6% of the total value distributed, followed by partners (19.4%) in the form of profits after tax on partners.
Along with financial services, the sector contributed around £ 96 billion in taxes in 2020, or 12.9% of total UK tax revenue, while accounting for 10% of total UK economic activity.
In total, the sectors employed 755,800 people, representing 2.3% of the total UK workforce.
Earlier this week, the Institute for Fiscal Studies (IFS) Green Budget 2021 said the UK government’s tax hike announcements were the biggest in more than 25 years, but they will still leave Chancellor Rishi Sunak “little room for maneuver” in this month’s Budget and Expenditure Review.
The tax hikes will raise the UK’s tax levies to its highest sustained peacetime level and spending will reach 42% of national income, more than 2% above the pre-pandemic spending level and its highest level in “normal times” since 1985, the IFS had predicted.
Watch: Why UK tax hikes seem inevitable