Rishi Sunak has hailed an ‘historic agreement’ after G7 leaders approved plans to force internet giants such as Amazon, Apple and Microsoft to pay more tax.

The Chancellor made the announcement after chairing a second day of talks at Lancaster House with fellow finance ministers, including those from the US and Germany, where they agreed on a minimum global corporation tax.

Speaking after the meeting, he said: ‘I am delighted to announce that today after years of discussion G7 finance ministers have reached a historic agreement to reform the global tax system.

‘To make it fit for the global digital age, but crucially to make sure that it is fair so that the right companies pay the right tax in the right places and that’s a huge prize for British taxpayers.’

The Chancellor defended the decision not to push for a higher global corporation tax rate at the meeting with G7 finance ministers after US President Joe Biden had initially argued it should be 21%.

Rishi Sunak told broadcasters in London: ‘I would say a couple of things. First of all, the agreement reached here today says at least 15% and secondly, it is worth taking a step back.

‘This is something that has been talked about for almost a decade.

‘And here for the first time today we actually have agreement on the tangible principles of what these reforms should look like and that is huge progress.’

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