The total tax contribution of the banking sector to the UK public finances in 2016/17 was an estimated £35.4 billion (5.4 per cent of total government tax receipts).

The report - commissioned by UK Finance and based on analysis by PwC - shows that £18.1 billion of the sector's tax contribution came from UK banks. £17.3 billion was contributed by foreign banks. Taxes borne - those that are a direct cost to a company - accounted for £19.0 billion of the total while taxes collected made up £16.4 billon.

This year's survey included the impact of the bank surcharge, introduced in January 2016, which generated £1.1 billion in payments from the sector. The introduction of the surcharge, along with an increase in corporation tax resulting from increased profitability, loss relief and compensation payment restrictions, drove an 11 per cent increase in taxes borne in 2016/17.

Receipts of corporation tax, the bank levy and the surcharge (£8.9 billion combined) are 22 per cent higher than corporation tax receipts before the financial crisis (£7.3 billion in 2007).