Are high tax rates putting your job at risk?

A report from accountancy firm KPMG suggests the UK's high tax rate is driving fund accounting jobs to the likes of Ireland and Luxembourg.

According to the report, overseas jurisdictions with low tax rates are increasing their share of assets under management a lot faster than the UK. Between 1995 and 2005 it says funds under management in Luxembourg rose 10 times faster, while those in Ireland rose twice as fast.

The good news is that Scots economic agencies and recruiters appear alive to the problem!

Cathy Malone, a member of Scottish Enterprise's financial services team, tells us the country is uniquely endowed with "a very competitive offering" for financial services companies "with a highly skilled labour market, at a cost-effective price and low risk environment."

Malone says this has helped grow the sector in Scotland by almost 40% over the past five years, nearly four times the Scottish average. And twice as fast as the UK's financial services sector.

Margaret Dyer, Scottish Director for Joslin Rowe, plays down the warnings: "Every year we hear of supposed threats to Scotland's financial services position."

Whilst it's true financial services firms continue to explore ways to streamline their businesses, "just as many firms are interested in moving to Scotland as are interested in moving to say Ireland, or elsewhere."

Dyer points to Scotland's enviable position: "The place is renowned for having an excellent skills base."

So your job should be fine (just as long as the Irish and Luxembourgians aren't just as skilled too).