Daily Mail

City firms paid record £75bn tax to Trea­sury


FI­NANCE firms paid a record £75bn of tax in the year to March – un­der­scor­ing the in­dus­try’s vi­tal role in the econ­omy.

The con­tri­bu­tion by banks, in­sur­ers, in­vest­ment com­pa­nies and other City firms was 4pc higher than in the pre­vi­ous 12 months, ac­cord­ing to re­search for the City of Lon­don Cor­po­ra­tion by ac­coun­tant PwC.

It ac­counted for 10.9pc of the Ex­che­quer’s to­tal tax take. The fig­ures show the ex­tent to which the Trea­sury re­lies on money from the Square Mile to fund vi­tal pub­lic ser­vices.

And they are likely to pile fur­ther pres­sure on MPs to back Prime Min­is­ter Theresa May’s Brexit deal so fi­nance com­pa­nies can con­tinue op­er­at­ing with­out ma­jor dis­rup­tion af­ter we leave the Euro­pean Union.

The num­bers also ex­pose the risk of ma­jor in­ter­ven­tion in the City such as that planned by Labour leader Jeremy Cor­byn.

Cather­ine McGuin­ness, of the City of Lon­don Cor­po­ra­tion, said: ‘With Brexit edg­ing ever closer, it is more im­por­tant than ever that the UK re­mains com­pet­i­tive. It is cru­cial we avoid a no- deal Brexit that could jeop­ar­dise fi­nan­cial sta­bil­ity and drive ac­tiv­ity away.’

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