JEREMY CORBYN accused Theresa May yesterday of “demeaning herself and the country” by threatening to convert a post-Brexit Britain into a “bargain basement tax haven” like Singapore.

The Labour leader referred to the sum of around £120 billion that would be lost from public funds over five years if the government made further cuts to corporation tax.

The figure was calculated on the basis of estimates from the Commons library after Chancellor Philip Hammond told a German newspaper last weekend that he would not rule out lowering the tax. Singapore has corporation tax set at 17 per cent.

In Britain, the rate is 20 per cent, but the government plans to cut it to the same level as the south-east Asian city-state in 2020.

This low-corporate tax and low-regulation system is “the preferred option of a significant part of [Ms May’s] government,” Mr Corbyn’s senior spokesman said after Prime Minister’s Questions (PMQs).

During PMQs, Mr Corbyn said that she should not make these tax haven threats with a view to bully the European Union into agreeing a favourable trade deal, as such a policy would only harm British people.

He said: “It wouldn’t necessarily damage the EU, but it would certainly damage this country — businesses, jobs and public services.

“She demeans herself and her office and our country’s standing by making these kinds of threats.”

Ms May insisted that the Brexit plan she unveiled on Tuesday was not based on threats and that she had set out a vision for “a stronger, fairer, more united, more outward-looking, prosperous, tolerant and independent, truly global Britain.”

In her high-profile speech, she announced that she would take Britain out of the single market, and possibly also the customs union, while seeking a free trade agreement to allow domestic companies to continue doing business with the 27 remaining EU nations.

She said that, rather than accept a “punitive” deal, she would lower corporate taxes in a bid to tempt transnations to funnel their profit through Britain.

Mr Corbyn accused her of having “snubbed Parliament” by delivering her speech at Lancaster House instead of in the Commons, where MPs would have been able to scrutinise it and publicly question her.

The Labour leader contrasted this tactic with Ms May’s claims to be acting in accordance with the democratic will of the people in implementing Brexit after the referendum vote, calling her “not so much the Iron Lady but the Irony Lady.”

The PM has also failed to set out even the most basic details of how Britain would have “frictionless” access to the single market in a “bespoke customs union deal” and how much it would cost, he continued.

Mr Corbyn pointed out there are 55,000 EU citizens working in the NHS, another 80,000 in the adult care sector and 5,000 in education who, even after Ms May’s speech, have yet to be reassured as to whether they would be allowed to remain in Britain after freedom of movement is withdrawn.

“There is still no answer,” Mr Corbyn and his frontbenchers said in unison.

Ms May said: “One of the key principles, the key objectives, is that we negotiate a free trade agreement with the EU that gives us the widest possible access for trading with and operating within the EU.”

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