Treasury written question – answered at on 17 January 2007.
To ask the Chancellor of the Exchequer pursuant to the Answer of 19 December 2006, Official Report, column 1729W, on City of London competitiveness, what assessment his Department has made of the contribution to the UK economy of non-EU businesses in the (a) financial services and (b) insurance sectors.
The UK financial services sector, including insurance, is contributing an increasing share of UK economic output, accounting for 8.6 per cent. of UK Gross Domestic Product in 2005 and supporting over 1 million British jobs. The UK's trade surplus in financial services was £19.1 billion in 2005.
London is the world's leading international financial centre, with unparalleled scale, scope and internationalism. 70 per cent. of global secondary bond market trading takes place in London, along with over 40 per cent. of over-the-counter derivatives trading, over 30 per cent. of world foreign exchange business, over 40 per cent. of global trade in foreign-listed equities, and 20 per cent. of cross-border bank lending. Over 250 foreign banks are based in the UK—more than in any other financial centre.
The success of the UK's financial sector depends on a number of factors, including our tradition of openness, innovation, high-level skills, world-class regulation and a competitive business environment. London has proved an attractive location for both EU and non-EU financial services providers, with non-EU providers benefiting not just from London's large pools of liquidity and broad international investor base but also from London's position as a gateway to European financial markets. The Government are working with the financial sector, including through the Chancellor's high-level group on financial services, to ensure its continued success.
Yes0 people think so
No1 person thinks not
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