Private banking's secret £5.5bn contribution to the economy
2 min read
03 October 2014
New figures reveal just how big a contribution the private banking industry makes towards the UK economy.
A new major study into Britain’s private banking and wealth management industry today reveals that the sector now oversees £524bn and contributes £5.5bn a year to the economy – equivalent to a city the size of Brighton and Hove.
The British Bankers’ Association’s Wealth of Opportunities report reveals that investors rate the UK higher than other financial centres for these services, and that the sector last year paid taxes of £1.2bn – equivalent to £19 for each individual living in the UK.
A survey of investors found that they were much more likely to invest and do business in Britain as a result of having their assets managed by wealth managers or private bankers in the UK.
“Make no mistake – the wealth management sector is a significant contributor to the UK economy and I am delighted that this report highlights the reality in stark terms, with more than 65,000 jobs supported by the sector and £5.5 billion of gross value added contributions to the UK economy,” says Liz Field, chief executive of the Wealth Management Association, which supported the report.
“The UK is respected as having the leading wealth management sector anywhere in the world. Clients at home and overseas utilise British wealth management firms to provide crucial advice that leads to increased investment in the UK economy, a stronger savings culture, and an increase in share ownership.
“It is crucial that the Government continues to ensurethe sector’s world-leading position, which faces significant regulatory challenges, so that the investment the industry promotes continues to grow in the years ahead.”