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.’