The financial service industry pumps enough into the UK economy each year to build 36 new hospitals or 600 city academies, according to reach from the British Bankers’ Association.
In the first of a series of analysis reports on the financial sector, the BBA found the financial services industry makes a £50bn contribution to the UK economy, 8.5 per cent of the UK’s gross domestic product.
It says industry corporation tax payments of £9bn a year would pay for 36 new hospitals or 600 city academies.
The industry employs three million people and inward investment by overseas banks in the UK is more than £36bn, says the report.
It also highlights the £10bn in dividends to shareholders last year which boosted the values of pension funds and other stock market investments.
BBA chief executive Angela Knight says: “The financial services industry in the UK creates millions of jobs, generates wealth for the UK’s citizens, contributes some £23 billion to the exchequer and provides the economic infrastructure which allows our entrepreneurs and businesses to grow.
Without the global success of British banking there would be a gaping hole in the nation’s finances and in people’s pensions. It really is the engine room of the economy.”