I have some bad news for the Chancellor. The financial services sector, one of the great hopes of the government in terms of jobs and economic revival, is shrinking.

The number of active FCA-authorised firms has dropped by 3.7% over the past six months to 75,213 - down 7% year on year, with M&A activity driving much of the consolidation.

Latest FCA data shows a sharp drop in the number of regulated firms in April as the number of authorised firms continues to tumble.