At least £325billion of dirty money flows through Britain every year, a damning report has claimed.

The stark figure is equivalent to more than 10 per cent of the UK's GDP and includes illicit money linked to money laundering, corruption, financial crime and illegal trade and tax dodging.

Taking into account the UK's crown dependencies and overseas territories, such as Jersey and the Cayman Islands, the figure soars to nearly £788billion annually, according to the report by the Finance Innovation Lab charity.

Conservative MP Sir Andrew Mitchell said: 'The UK is at the centre of a global spider's web of dirty money. 

'It is frankly outrageous that UK linked tax havens are continuing to take so many billions out of the public coffers of countries around the world, including many of the world's poorest.'

The research is understood to be the first comprehensive attempt to lay bare the scale of dirty money flowing into the UK. It concludes that the scale is both 'substantial and systemic'.

'The UK's global role as a financial hub brings economic benefits, but it also attracts criminal, corrupt, and tax-abusive activity that undermines national integrity, distorts markets, and erodes public trust,' it warns.

Ministers have been urged to 'demonstrate leadership' by confronting the UK's role in enabling financial crime and tax evasion.

Jesse Griffiths, one of the report's authors, said: 'Rachel Reeves has described the UK's financial sector as the 'crown jewel' of the economy. 

'Our report shows that, all too often, it is in fact playing a central role in supporting illicit financial flows: harming our economy, taking money from our public services and supporting crime. 

'Understanding the true scale of this is an essential first step toward ensuring the financial system works for society, not against it.' 

The figures were released as the UK postponed the Illicit Finance Summit to December.

The all-party parliamentary group (APPG) on anti-corruption and responsible tax is backing calls for government action. 

The Lab says the UK must act to prevent UK-linked tax havens such as the British Virgin Islands from undermining the global system and increase resources for enforcement agencies including the National Crime Agency and Serious Fraud Office.

It has also urged the UK to 'pause' on plans to make the UK a global centre for crypto finance amid crypto assets increasingly being linked to money laundering and hidden market dealings.

'The UK's global role as a financial hub brings economic benefits, but also attracts criminal, corrupt and tax-abusive activity that undermines national integrity, distorts markets and erodes public trust,' the report said. 

'Government plans to make the City a global hub for crypto assets risk exacerbating this.' 

Phil Brickell, the Labour chair of the APPG, said: 'After years of inaction from previous governments it is time for us to become part of the solution, not part of the problem. It's time to give our enforcement agencies the resources they need to crack down on the scourge of economic crime, and for key UK overseas territories to finally lift their veil of corporate secrecy.'

A government spokesperson said: 'Corruption makes British people poorer and less safe and undermines our democracy which is why the government's anti-corruption strategy was published in December to bring more corrupt actors to justice.

'New crypto regulations will bring crypto into the UK regulatory domain by 2027, and we're recruiting an extra 5,500 compliance officers to tackle tax evasion.'