Google and Facebook have welcomed a G7 deal on tackling corporate tax avoidance by big tech companies.

The agreement will see a global minimum corporate tax of at least 15% – lower than a floor of 21% mooted by President Biden – and changes to which countries will benefit.

Chancellor Rishi Sunak called the deal “a proud moment”.

Speaking after two days of talks in London, he added it “meant the right companies pay the right tax in the right places”.

The changes would ensure major corporations, especially those with a strong online presence, will pay taxes in the countries where they operate and not only where they have headquarters.