Our economic impact.


We are a company that develops economic value and a positive benefit for the economies in which we operate. We are at the centre of many transactions and financial flows. The table below outlines our economic value as a result of doing business in a single year.

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Taxation

The total taxes borne and collected in 2012 and paid to UK and overseas governments as a result of us doing business.

In 2012 - £660m (2011: £615m).

This comprised UK taxes of £561m (2011: £535m) and overseas taxes of £99m (2011: £80m)

Read more in our annual report and accounts 2012

Investment
The amount of investment going into businesses, on behalf of our customers, that representing around 4% of capital to the FTSE Allshare.

Totalling £406bn in 2012

Our good governance programme provides more details

Regeneration in commercial property

The amount we invest, on behalf of our clients, via Legal & General Property, to provide space for businesses to operate and grow. We are the third biggest UK commercial property landlord.

Totalling £10.4bn in 2012

 

This includes funds such as the English Cities Fund, which regenerates communities across the UK.

ECf English Cities Fund

Read more about our work in our sustainable property section

Employment
The total salaries  we pay our UK employees which then is spent on products and services in the economy.

Totalling £238m in 2012

Read more about the contribution that our people make to our customers and business in our employees section

Procurement
The amount that we spend with suppliers to run our businesses in the UK.

Totalling £446m in 2012

Read more in our sustainable supply chain section

As an investment for our shareholders
The amount in dividends that we paid to big and small shareholders as a result of doing business.

Totalling £394m in 2012

Read more in our annual report and accounts about our dividend policy and approach

Being there for our customers

The total amount paid out to our customers in their time of need whether that be Home insurance claims, pensions customers paid retirement income, life assurance customers paid out or group protection customers paid out and rehabilitated.

Payouts to customers totalled £2.16bn in 2012.

Read more in our product performance section

Contributions to local communities
We actively contribute to the Third and not for profit sectors in the UK, France, Netherlands and the USA businesses

Totalling £3.8m in 2012

Read more about how we did this in our community section

OUR THINKING ON ECONOMIC VALUE AND IMPACT

Growth through investing in infrastructure

In December 2011 Vince Cable MP, Secretary of State for Business, Innovation and Skills, asked Tim Breedon, our then Group Chief Executive, to chair an independent industry taskforce to examine structural and behavioural barriers to alternative debt markets in the UK.

This taskforce was set up promptly and consisted of a number of highly regarded members of the business, banking and finance community. Timings were tight as the taskforce had to make recommendations to the government before the budget in March 2012. However, in this short period, over one hundred consultation responses were received and workshops were held with stakeholders around the country.

Speaking about the taskforce Tim said,

Taking a wider interest is one of the key behaviours we are encouraging employees to adopt as we build our new culture. Involvement in this taskforce has extended to a number of Legal & General employees, giving the opportunity to gain a much deeper understanding of working with Government and colleagues across our sector.

This has allowed us to put our expertise to use for the public benefit. As one of the UK’s largest companies, I believe we should take an active role in shaping the policy environment for business and this is one of the reasons I accepted the role of Chairman of the Taskforce. We have a good relationship with government – this is why we were asked – and this builds the relationship to a new level whilst also improving public awareness of who and what we are."

The Government welcomed the taskforce’s report and agreed that more can, and should, be done to build alternative markets and unlock new pools of capital. The taskforce’s report recommends areas where industry can act to stimulate and expand alternative finance markets and where there are actions for Government to take. Vince Cable stated that he hopes that this work will, “Represent a turning point in business finance in this country”

Read a full version of the report and the Government’s response.

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