§ Lord Kennetasked Her Majesty's Government:
Whether it is the case that, in the past 20 years,"financial services" have come to account for more than 23 per cent. of the United Kingdom's gross domestic product, and if so, what are the long-term implications for the British economy and particularly for unemployment.
§ The Parliamentary Under-Secretary of State, Department of Employment (Lord Henley)In the breakdown of GDP by industry published by the CSO in table 2.2 of the "Blue Book", financial services are part of a wider sector,"financial intermediation, real estate, renting and business services". In 1992, the latest full year available, this sector accounted for 23.7 per cent. of GDP at current factor cost. Within this, financial intermediation accounted for around 6.6 per cent. of GDP. The evolution over time in the pattern of output and employment reflects a variety of factors such as the way households choose to spend their incomes, technical progress and the UK's comparative advantage in international trade. Over the past 20 years thenumber of people employed in financial services has risen substantially.