Overseas banks in the UK are pushing for tax cuts to keep the City competitive after Brexit, ahead of Chancellor Philip Hammond’s Budget next month.

The Association of Foreign Banks (AFB) – which represents giants like JP Morgan, Citigroup and UBS – has warned that many of its members are frustrated at what they perceive to be the poor deal offered by Britain, which charges banks a corporation tax surcharge and a levy on assets.

In the 2016-17 financial year, the Treasury raked in £4.6bn from the bank surcharge and levy combined and the financial services industry paid a record £72bn in total taxes. Of this figure, £17.3bn came from foreign banks.