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London Contractors Pay The Most Tax Says New Report

The statistics don’t lie…London pays approximately one third of all UK tax, generating as much as most other cities combined.

Thanks to a new report by Think Tank, Centre for Cities, we can see just how important London is to the financial status of the UK. Not only that, but it went on to suggest that contractors are right at the forefront of this strong London economy, and this will remain the same for many years to come.

In fact, during the last 10 years the amount of tax paid by London residents has gone up by 25%, while in comparison, Manchester residents has stayed pretty much the same, while in cities like Birmingham, Glasgow and Leeds the amount of tax paid has actually gone down.

So why is the economy so strong in London and why are so many contractors finding work there? There are many reasons, but the main one is because the capital is a hub of economic activity for companies from around the world, with many European, Asian and North American brands setting up offices and shops there.

Also, London is very attractive to contractors from around the European Union, with millions of workers from many different countries arriving in the capital over the last 10 years with the intention of working hard and paying their taxes to the UK government

It’s not all straight forward in the future though. Since the UK voted to leave the European Union earlier this year, there are not clear plans on what will happen to European workers living and working in London over the next few years.

If the new Prime Minister and her government are smart though, I think they should do everything in their power to make sure London keeps strong international ties with both companies and workers, and do everything they can to ensure there are many contractors allowed to work in the capital for many years to come. If they don’t, then don’t be surprised when you get paid less tax in 10 years time.

While things are definitely looking good for London right now, the report has also highlighted the need to focus more on improving the economies in other cities, particularly in the North, West Midlands and Scotland.

Some people are calling for more public spending in cities like Manchester and Glasgow, in order to make them more attractive for both companies and workers alike.

My opinion on this is straight forward. Yes, London is the foundation of the UK economy and our main focus should be there, especially if they want to keep generating income tax from the thousands of contractors.

However, let’s not forget that cities like Manchester, Birmingham, Glasgow, and Leeds could also be huge economic powers in their own right with just a bit more attention and public spending. Over to you Prime Minister.

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