Financial Services: National Income

Mr. Carmichael
To ask the Chancellor of the Exchequer what percentage of UK gross domestic product came from (a) UK financial services and (b) institutions in the City of London/Square Mile in the latest period for which figures are available.

Angela Eagle
The information requested falls within the responsibility of the National Statistician who has been asked to reply.

Letter from Colin Mow, dated 25 October 2007:

The National Statistician has been asked to reply to your recent Parliamentary Question requesting the percentage of UK gross domestic product that came from a) UK financial services and (b) institutions in the City of London/Square Mile. I am replying in her absence. (160666)

Financial intermediation contributes 7.9% of Gross Value Added (GVA), which is a proxy for GDP. This consists of banking (5.2%), insurance (1.6%) and acts auxiliary to financial intermediation (1.0%).

These figures use weights derived in 2003, which are the latest available.

The Office for National Statistics publishes regional GVA using official statistical geographies known as Nomenclature of Units for Territorial Statistics (NUTS). The NUTS classification does not fully correspond to the institutions in the City of London/Square Mile.

The City of London/Square Mile is in the NUTS3 region of Inner London West but it is not possible to isolate the GVA of the City of London institutions. The latest published NUTS3 data can be found at:

http://www.statistics.gov.uk/statbase/Product.asp?vlnk=14650