Analysis of government data by a body representing British businesses has found that together UK firms paid £196 billion in taxes in 2018/19.

In 2017/18, the total bill was £188 billion.

At the current rate, the CBI says, UK firms are contributing 27% of tax revenue, in the form of corporation tax, National Insurance contributions, business rates, fuel duties, and assorted other taxes.

Rain Newton-Smith, CBI Chief Economist, said:

"The single most effective remedy to the current structural challenges facing the British economy is a simple one – increased business investment. Any future changes to direct business taxes will need this as a number one priority, keeping in mind the rapid changes that new technology is bringing to the way we work and shop."

A spokesperson for HM Treasury said:

"Record employment, the strongest wage growth in a decade and increasing corporate profits last year provided a boost not just to individuals and businesses, but also to the public finances, as tax revenues grew by almost 5%.

"We're keeping taxes low to support people and businesses to keep more of what they earn. We've cut taxes for over 30 million people and we have the lowest corporation tax rate in the G20."

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