CORPORATIONS will receive an extra £120 billion in tax giveaways over five years in the event that post-Brexit Britain cuts taxes even further than already announced, Labour warned yesterday.

The Tory government is preparing the “greatest corporate tax giveaway in British history” for when it finalises the nation’s exit from the EU, Labour warned, drawing on estimates from the House of Commons library.

The warning came after Chancellor Philip Hammond, speaking to a German newspaper at the weekend, did not rule out further cutting taxes if EU nations offer an unfavourable trade deal.

Labour demanded that the government come clean with the British people on the economic implications of its Brexit plans, which, Prime Minister Theresa May said yesterday, include withdrawal from the EU single market.

Speaking after Treasury questions following Ms May’s speech, Shadow chancellor John McDonnell said: “Labour has warned that the Tories are lining up a bargain-basement Brexit and now Philip Hammond has confirmed it, promising huge tax cuts for the corporate elites.

“It is beyond reckless for the Chancellor to speculate about turning Britain into a tax haven after six years of Tory failure have seen the national debt rise by £600 billion while austerity has hammered living standards for most.

“He has wriggled out of answering questions in Parliament as to how he will continue to finance the health and social care we need if he slashes corporation taxes.

“Only Labour is committed to breaking our rigged economic system and delivering real pay increases for working people.

“We’ll reverse the Tory tax giveaways for the elite and deliver the investment this country needs for high-paid, secure jobs.”

Britain, through the City of London and its overseas territories, is already the world’s biggest tax haven. Tory plans to cut corporation tax to 17 per cent by 2020 would make it the lowest rate in the G20.

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