LABOUR paid zero corporation tax last year – despite being in surplus by £4.3million – the party’s accounts revealed yesterday.

Despite directing stinging criticism at firms who avoid paying tax, official documents showed the party reduced their corporation tax bill to nothing by offsetting tax losses and other expenses.

3 The embarrassing revelation came as leader Jeremy Corbyn was ridiculed yesterday after setting out a bumper £500billion spending spree pledge - with no concrete plans as to how he’ll fund it Credit: PA:Press Association

3 Last night Tory MP Chris Philp said: “The hypocrisy of the Labour Party and its leader claiming it will tackle tax dodging whilst avoiding paying up themselves is extraordinary.” Credit: SWNS:South West News Service

The party boasted a record income of £51.1m last year and spent £46.7m meaning it generated a surplus of £4.3m, according to figures from the Electoral Commission.

That’s £11m up on the previous high of £39.6m in 2014.

Labour’s income and expenditure were well ahead of the £41,887,000 taken in and £41,030,000 spent by the Tories who ran a surplus of £1m and paid £238,000 in tax.

Last night Tory MP Chris Philp said: “The hypocrisy of the Labour Party and its leader claiming it will tackle tax dodging whilst avoiding paying up themselves is extraordinary.”

The embarrassing revelation came as leader Jeremy Corbyn was ridiculed yesterday after setting out a bumper £500billion spending spree pledge - with no concrete plans as to how he’ll fund it.

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And despite his calls for a “kinder” politics the leadership battle turned nasty last night as his closest ally Shadow Chancellor John McDonnell rounded on leadership hopeful Owen Smith.

Mr McDonnell accused him of “blackmailing” members dubbing him an “ambitious career politician” after the leadership hopeful warned Labour “could bust apart and disappear” if Jeremy Corbyn wins the contest next month

Mr Corbyn talked down claims the party was “teetering on a precipice” as he unveiled his policy plans to “rebuild” Britain.

3 John McDonnell accused Owen Smith of “blackmailing” members dubbing him an “ambitious career politician” Credit: PA:Press Association

But he repeated claims made last year and nicked Tory housing pledges like the vow to “build a million new homes in five years”.

There were no details as to how he’d fund his universal childcare pledge which experts said would cost at least £2.6 billion to implement.

A Labour Party spokeswoman said last night: “Corporation tax is paid on taxable profits and the Labour Party made no taxable profits.

“The Labour Party pays all tax that is due.”

A final decision on a High Court battle brought by Labour party members banned from voting in the forthcoming leadership contest will be published on Monday.

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