The BBA revealed that the total tax contribution for the UK banking sector climbed to £34.2bn in the year to 31^st March 2016, representing a 9.3% increase on the corresponding figure for 2014.

The additional £16.8bn, or 49.1%, was attributed to tax payments from foreign banks operating in the UK.

Anthony Browne, chief executive of the BBA, said: “The UK’s success as a world-leading financial centre has been underpinned by a reputation for a fair, stable and transparent tax system.

“This enables businesses to plan and invest with confidence for the long term.

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“It is more important than ever that the UK remains a competitive place to do business for both domestic and foreign banks with a … stable tax environment.”

The BBA attributed this growth in part to changes to the restriction of loss relief and deductibility of compensation payments, which resulted in corporation tax climbing 100% to £3.2bn.

Meanwhile, a rise in the bank levy led to receipts of £3.4bn, up 54% on the £2.2bn recorded in 2014.

“Banks are committed to paying their fair share and have been subject to five bank-specific tax measures since 2010,” Anthony added.

“They now pay almost four times the combined cost of putting on the 2012 Olympic and Paralympic Games each year.

“This matters because banking is the UK’s leading export industry, employs over half a million people right across the UK, two-thirds of whom are based outside London.”