Impact of reduced government revenues?
The crisis in the financial sector has dealt a severe blow to government finances.
In 2006/7 the financial sector contributed 27.5 per cent of all corporation tax receipts and this income is under threat from the crisis in the sector and the huge losses being experienced by the banks. But corporation tax is not the only contribution the sector makes to the Exchequer, there is stamp duty on transactions, VAT – and income tax on high salaries and bonuses.
All of these are under threat and the effect is a major blow to government revenues at a time when demands for spending are rising strongly.
This is more evidence of the hard decisions that will have to be made and although £42m of promised support for the sector has been made, ensuring that this is delivered in a timely way in the harsh reality of the financial climate is going to be something the sector has to work at.
Author: Clarissa Dann
Clarissa Dann was the editor of Caritas as well as an HR and management online service,he People Bulletin until July 2011.
She is now the editor of the specialist trade finance magazine, Trade and Forfaiting Review which can be viewed at www.tfreview.com but does write on charity finance and investment from time to time.
Clarissa has a background in legal and professional publishing, as well as business journalism and holds an MBA from
There are no comments on this article. Be the first to comment.