Tax take proves ‘crucial’ City role

FINANCE firms paid a record £14.6bn in corporation tax last year in fresh evidence of the City’s crucial role in Britain’s economy.

The tax payment was 24pc higher than in the previous financial year, according to accountant Moore Stephens.

Financial services paid 27pc of the total UK corporation tax receipts in the year, up from 16pc in 2011-12. It suggests that industry profits have continued to grow despite fears of a slump in the run-up to Brexit.

The figures will raise questions over whether Labour’s threats to hit the City with even higher taxes are workable.