City Job Cuts To Cost The Government £1.3Bn In Lost Tax Revenue

[interestrateripoff]

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8673105/City-job-cuts-to-cost-the-Government-1.3bn-in-lost-tax-revenue.html

Credit Suisse, Goldman Sachs and UBS are already preparing to cut hundreds of London-based employees, but with revenues from trading and securities underwriting collapsing as the eurozone and US debt crisis hits investor activity, many other banks are expected to follow their lead and begin cutting jobs.

........

The cuts, the majority of which have yet to be announced, will strike a blow to the UK's financial services sector, which remains one of the country's largest employers, despite the job losses in the wake of the financial crisis.

Estimates vary, but a 5pc reduction by the end of the year in the total number of "City-type" jobs is thought likely. This would equal a loss of about 16,000 jobs in the next five months.

Based on an average salary of £150,000 and income tax of 50pc, employer national insurance of 2pc and employee national insurance of 2pc, this works out an average lost tax income per lost City job of £81,000, or a total loss of about £1.3bn in tax revenue.

Nice following on from the HSBC job loss thread clearly the govt is going to have a problem funding it's banker bailout. I also highly doubt these people will find other employment paying a similar amount.

Still the govt doesn't need taxes when it can just printy printy...

[erranta]

http://www.telegraph...ax-revenue.html

Nice following on from the HSBC job loss thread clearly the govt is going to have a problem funding it's banker bailout. I also highly doubt these people will find other employment paying a similar amount.

Still the govt doesn't need taxes when it can just printy printy...

Well there's that

but

is it also to 'cover up' the huge loss of Tax income

(the London Politicians love to tell us about and why the Finance sector is SO important)

from banks offsetting their gambling 'losses' from CDO's etc for next 'X'++ years?

Indeed why are we not suing USA regulators and US banks for these losses as they passed them on as AAA minimal risk

[Georgia O'Keeffe]

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8673105/City-job-cuts-to-cost-the-Government-1.3bn-in-lost-tax-revenue.html

Credit Suisse, Goldman Sachs and UBS are already preparing to cut hundreds of London-based employees, but with revenues from trading and securities underwriting collapsing as the eurozone and US debt crisis hits investor activity, many other banks are expected to follow their lead and begin cutting jobs.

Too offset this catastrophic loss id like to personally donate the remainder of UBS to the UK, if they take schappsly on and get some real innnovation going in the business you can more than make up the 1.5bn, fill yer booties, (we'll keep Credit Suisse here because its probably just about manageable) and has a higher class of totty

Edited July 31, 2011 by Mary Cassatt

[Bloo Loo]

its the same argument they use for no cuts in the public sector...the revenue loss is just unbearable...then, there is all that money they WONT spend in the economy.

Russia were amateurs at THEIR communism.

[Si1]

its the same argument they use for no cuts in the public sector...the revenue loss is just unbearable...then, there is all that money they WONT spend in the economy.

indeed.

it stinks

[The Masked Tulip]

Earlier in the year I was getting quite a few IT contract offers from banks in the City - loathe them personally, but the money is excellent.

But I was very concerned that, in taking one, there was a real danger of being on the bad end of job cuts later in the year. Looks like my fears were correct.

You have to wonder what the banks are seeing in corporate earnings that are not being reflected, as yet, in the stock markets.

[The Masked Tulip]

Too offset this catastrophic loss id like to personally donate the remainder of UBS to the UK, if they take schappsly on and get some real innnovation going in the business you can more than make up the 1.5bn, fill yer booties, (we'll keep Credit Suisse here because its probably just about manageable) and has a higher class of totty

Isn't UBS the bank that sent a memo out earlier this year advising staff on what colour suits they had to wear, how long men's hair had to be above their collars, how many buttons a woman's blouse had to be buttoned up to and ow it had to not show her female form and, wait for this, what colour socks, bras and knickers the staff had to wear.

I don't mind being told what colour suit I have to wear but I draw the line at anyone telling me what colour bra and knickers I should wear!

[Georgia O'Keeffe]

Isn't UBS the bank that sent a memo out earlier this year advising staff on what colour suits they had to wear, how long men's hair had to be above their collars, how many buttons a woman's blouse had to be buttoned up to and ow it had to not show her female form and, wait for this, what colour socks, bras and knickers the staff had to wear.

I don't mind being told what colour suit I have to wear but I draw the line at anyone telling me what colour bra and knickers I should wear!

i think youve been reading too much on tinternet, that certainly doesnt fit the look of the people coming out of the head office after finishing a shift or those i know work there, maybe its a British thang?. Some of the private banks however look as if the employees walk around with the coathanger still in

Edited July 31, 2011 by Mary Cassatt

[Georgia O'Keeffe]

You would have to say, with those two domiciled in Switzerland, it's only a matter of time before the country blows up!

Ireland with steroids.

Tis certainly a potential ticking timebomb, if E europe blows so does Switzerland i would guess. Although its better to be in a relatively democratic country that hasnt had the will stomped out of it by state and entitlement when it blows than not and Lake Zurich and the sun will still be here afterwards.

Edited July 31, 2011 by Mary Cassatt

[Bloo Loo]

Tis certainly a ticking timebomb indeed, when E europe blows so does Switzerland i would guess. Although its better to be in a relatively democratic country that hasnt had the will stomped out of it by state and entitlement when it blows than not and Lake Zurich and the sun will still be there afterwards.

odd, but according to some posters, each and every debt is cancelled by an asset.

Surely if most of European and US banks are all busted if they lose a couple of these assets,one has to ask how much, in the event of a default, they would be offsetting against loans they made....

Would generally work itself out...unless a whole community of banks were net negative...which is probably the case in a deficit driven economy.

[Nomadd]

Earlier in the year I was getting quite a few IT contract offers from banks in the City - loathe them personally, but the money is excellent.

But I was very concerned that, in taking one, there was a real danger of being on the bad end of job cuts later in the year. Looks like my fears were correct.

And yet those "fears" have lost you a lot of money... I "loath" banks too, but as an I.T. consultant, I don't really have much choice other than to "go where the work is."

Having avoided working for Banks for nearly 10 years, I found that 3.5 years ago I had no choice but to go back. As a friend of mine (also an I.T. contractor) pointed out: Consider your time there as a "tax reclamation scheme", a way of getting back the money you've had to pay via your tax bill to "save the buggers" in the first place. And now, 3.5 years and £500k+ worth of invoicing later, I do find that I feel a lot better (especially as half of that amount was earned at a bank who had "managed" some of my savings for ten years and returned me literally nothing beyond what monies I'd put in at the start...)

Sure, I (and many others) may be given "the boot" in the next 6-12 months, but that's business, I'm afraid. As long as you've made some cash along the way, and not spent it like a moron, what's not to like? And I can't think of any other industry that would have been, or currently would be, any "safer" to work in in the UK - people are getting let go across the board these days.

Love them or loath them, if you want to buy a house in this crazy country, working for a Bank is about the only way left of achieving that.

Sad, but true (at least for me.) Others, obviously, may be in a different position.

Just my two cents.

Nomadd

[The Masked Tulip]

And yet those "fears" have lost you a lot of money... I "loath" banks too, but as an I.T. consultant, I don't really have much choice other than to "go where the work is."

Having avoided working for Banks for nearly 10 years, I found that 3.5 years ago I had no choice but to go back. As a friend of mine (also an I.T. contractor) pointed out: Consider your time there as a "tax reclamation scheme", a way of getting back the money you've had to pay via your tax bill to "save the buggers" in the first place. And now, 3.5 years and £500k+ worth of invoicing later, I do find that I feel a lot better (especially as half of that amount was earned at a bank who had "managed" some of my savings for ten years and returned me literally nothing beyond what monies I'd put in at the start...)

Sure, I (and many others) may be given "the boot" in the next 6-12 months, but that's business, I'm afraid. As long as you've made some cash along the way, and not spent it like a moron, what's not to like? And I can't think of any other industry that would have been, or currently would be, any "safer" to work in in the UK - people are getting let go across the board these days.

Love them or loath them, if you want to buy a house in this crazy country, working for a Bank is about the only way left of achieving that.

Sad, but true (at least for me.) Others, obviously, may be in a different position.

Just my two cents.

Nomadd

Fair point. But I also could not stand the fact that, of all the IT contracts I have, working for the banks were the only contracts where I would feel a part of me dying each day.

If you don't get that then great for you. For me, life is too short and too important.

[Si1]

odd, but according to some posters, each and every debt is cancelled by an asset.

and every paper asset may be cancelled by debt, which is where the pain lies

[Nomadd]

Fair point. But I also could not stand the fact that, of all the IT contracts I have, working for the banks were the only contracts where I would feel a part of me dying each day.

If you don't get that then great for you. For me, life is too short and too important.

Life is "too short and too important" for me also. And after near 23 years of I.T contracting, it's getting shorter and more important by the day.

I've only ever worked for one bank I really didn't like; ditched them after 6 months. Current client (Investment Bank) is one of the nicest I've ever worked for (next renewal brings it up to two years with them.)

Not all Banks are the sweat-shops they are made out to be; far from it, in fact.

Now, don't get me started about working in Retail I.T. (big supermarkets), there is an industry to be avoided...

Nomadd

EDIT: Sorry, but we are wandering off-topic here. Will cut posting any more on this now.

Edited July 31, 2011 by Nomadd

[The Masked Tulip]

Life is "too short and too important" for me also. And after near 23 years of I.T contracting, it's getting shorter and more important by the day.

I've only ever worked for one bank I really didn't like; ditched them after 6 months. Current client (Investment Bank) is one of the nicest I've ever worked for (next renewal brings it up to two years with them.)

Not all Banks are the sweat-shops they are made out to be; far from it, in fact.

Now, don't get me started about working in Retail I.T. (big supermarkets), there is an industry to be avoided...

Nomadd

EDIT: Sorry, but we are wandering off-topic here. Will cut posting any more on this now.

[happily renting]

Based on an average salary of £150,000 and income tax of 50pc,

Very dubious figure.

Isn't UBS the bank that sent a memo out earlier this year advising staff on what colour suits they had to wear, how long men's hair had to be above their collars, how many buttons a woman's blouse had to be buttoned up to and ow it had to not show her female form and, wait for this, what colour socks, bras and knickers the staff had to wear.

Not to detract from the silliness of that memo, but it was addressed to people working at the retail banks in Switzerland, not to employees in the UK.

[interestrateripoff]

odd, but according to some posters, each and every debt is cancelled by an asset.

Surely if most of European and US banks are all busted if they lose a couple of these assets,one has to ask how much, in the event of a default, they would be offsetting against loans they made....

Would generally work itself out...unless a whole community of banks were net negative...which is probably the case in a deficit driven economy.

But that denies the problem of leverage.

[matroskin]

Too offset this catastrophic loss id like to personally donate the remainder of UBS to the UK, if they take schappsly on and get some real innnovation going in the business you can more than make up the 1.5bn, fill yer booties, (we'll keep Credit Suisse here because its probably just about manageable) and has a higher class of totty

Also, cutting FSA budget will too help a bit

From page 72

The total amount required to fund our

budgeted costs for 2011/12, as set out in Table 7.4,

is £500.5m, an increase of 10% on the equivalent

AFR of £454.7m for 2010/11.

From page 72

How on earth they could escape the HMG cuts? And even increase their budget by 10%? Let me guess - they hired the "talent" from the same banks they're policing