JOHN MCDONNELL is calling on Chancellor Philip Hammond today to stop giving big businesses corporate tax giveaways that could amount to £110 billion bythe end of this parliament.

Government plans to cut corporation tax again, by 2 per cent this time, would cost the Treasury up to £5.6bn a year, Labour said, citing HM Revenue and Customs figures.

These corporations are “hoarding” nearly £700bn in cash as a result of tax cuts implemented since 2010, reveals the party’s analysis of the data published on Friday.

At the same time, there was a 55 per cent real-terms growth in dividends from 2010 to 2017, Labour added.

Mr McDonnell says that the £700bn figure, representing a 40 per cent real-terms increase since former Tory chancellor George Osborne started cutting corporation tax, could be used to increase NHS funding.
 
 He added: “The past week has seen the last scrap of Tory economic credibility blown to pieces.

“First we had a totally uncosted announcement on NHS funding, quickly followed by reports that the Chancellor had told the Cabinet he’d run out of money.
 
“At the same time as creating a funding crisis across our public services, the Tories have gifted corporations with a cash cow of at least £110 billion.

“It’s these big businesses that are now sitting on £700bn, hoarding it away rather than doing anything to invest in the real economy.
 
“Labour will put an end to this failure, supporting the real economy and incentivising companies to invest rather than hoard their money. And we will fund public services properly, rather than divert resources to the wealthiest.
                                                                          
“The Chancellor must cancel his latest planned bonanza for big business and not cut corporation tax any more than they already have.

“It should be corporations, not the lowest paid, who stump up the funds for our NHS.”