Global Britain, November 8, Catherine McBride
Financial, Insurance and Pensions, and Other Business services are the UK’s largest export industries, but they are threatened by high corporate taxes and low productivity – caused by overly prescriptive regulations, listing requirements not followed by other countries and disproportionate ESG reporting rules – all coupled with very expensive electricity. Together these threats make the UK less competitive with its rival financial centres and could destroy this thriving sector of the UK economy.
THE UK’S SERVICE EXPORTS now make up 48% of the UK’s total exports. The UK’s three largest service exports – Financial services, Insurance and Pensions, and Other Business Services – account for over 60% of total UK service exports. These three service sectors have been growing steadily since 2016 with Financial Service exports up 24%, Insurance and Pensions up 50% and Other Business Services up 72%.
Other Business Services are now not only the UK’s largest service export sector, but they are also larger than any goods export sector. In 2022 the UK exported £124.4 billion of SITC 7 Machinery and transport equipment, our largest goods export sector, but a massive £149.2 billion in Other Business Services.
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