London Raises 29% of UK’s Taxes
July 8, 2016 Taxation in UK
LONDON – The UK has a strong dependence on the tax collected in London, which outranks every other city in the country based on the around of tax funds it brings in.
The results of new research released by the UK think-tank Centre for Cities shows that the government of the UK very dependent on tax revenues generated in the city of London.
It is estimated that in 2014-15 London was responsible for 28.6 percent of all income tax, land and property taxes, and VAT collected in the UK, while in in 2004-05 the city brought in 25.3 percent.
The growth in tax collections seen over the ten-year gap is equivalent to approximately GBP 28 billion.
All other cities in the UK bring a significantly lower amount of tax collections, with the next highest ranked city, Manchester, bring in only 3.6 percent of all tax revenues.
Commenting on the results of the report, Chief Executive of Centre for Cities Alexandra Jones said “…The UK’s growing reliance on London’s taxes underlines the importance of ensuring that the capital prospers in a post-Brexit world. But our research also shows that more must be done in the years ahead to strengthen the economies and tax bases of other city regions.”
Photo By: Evan Bench