“Tax giveaways for the big banks and spending cuts for everyone else” – McDonnell on new City scandal

This is the statement issued by shadow chancellor John McDonnell following reports today that some large foreign banks in Britain are paying an average tax rate of just six per cent on billions of dollars of profits made here.

These figures once again look like alarmingly low tax rates for big banks which are making eye-watering amounts of money.

After six wasted years of failed Tory economic policies, in which the Government has handed out tax giveaways to many large multinational banks, these figures only further show that the true agenda of this Government is to create an environment in which big banks get tax giveaways, while everyone else gets spending cuts.

However, even more worrying is that we only know this information thanks to Labour pressure that forced the Government to sign up to country-by-country reporting for banks. Philip Hammond is yet to make clear whether or not he will seek to retain this EU regulation upon Brexit, and if his lacklustre approach to taxation of the financial sector is anything to go by, then there is a real cause for concern.

Labour is committed to a fair and transparent taxation system where everyone pays their fair share, so we can create a country where no-one and no community is left behind.