New CBI (www.cbi.org.uk) analysis of data published by the Office for National Statistics has found that UK businesses paid £196 billion in taxes in 2018/19, up from £188 billion in 2017/18.

The total business tax contribution amounts to 27% of all tax revenue, with Corporation tax revenues accounting for 31% (£60 billion) of total tax revenue from businesses, while employer’s NIC accounted for 32% (£63 billion), business rates for 14% (£28 billion), fuel duties for 6% (£12 billion) and other business taxes for 17% (£33 billion).

Rain Newton-Smith, CBI chief economist, said: “Our analysis shines a timely light on the importance of business to the funding of our schools, hospitals and other public services.

“The efforts of successful enterprises, paying a fair share in tax, cannot be taken for granted by politicians at a time of such economic uncertainty.

“From investing in communities and creating opportunities for people to contributing more than a quarter of the total UK tax take, businesses are the heartbeat of towns and villages throughout the country.

“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.

“That means a studied evidence-based approach is paramount to ensure that the tax system is stable, transparent and simple.”