Instead chancellor Rishi Sunak is demanding fairer digital sales taxations for US internet giants. Mr Biden is lobbing for a 21 percent minimum corporation tax rate across the planet.

This is aimed at stopping companies dodging taxes by moving to tax havens.

However whilst Britain is ready to talk it is not currently backing the plan.

Mr Sunak is insisting it must be part of a package that will also tackle digital taxation.

The Government has introduced a new digital sales tax of two percent for online companies which derive revenue from the UK.

This covers search engines, social media platforms and online marketplaces such as Amazon.

It is estimated this will raise £500 million per year by 2024-5.

The chancellor is offering to scrap the UK’s digital sales tax if a new international agreement can be reached.

Mike Williams, Treasury director of business and international tax, told an Oxford University conference this is a key issue for Britain.

READ MORE: Biden savaged for ‘inadequate’ China policy- risks Beijing advantage

Mr Biden is hoping to raise US corporation tax to between 25 and 28 percent.

It was cut heavily during the Donald Trump presidency.

According to the Financial Times Mr Sunak plans to increase the UK corporation tax rate to 25 percent by 2023.

This would be one of a package of measures designed to repair economic damage caused by the coronavirus pandemic.

Labour is urging the Government to support Mr Biden’s global tax initiative.

Shadow foreign secretary Lisa Nandy argued this is needed to avoid “a race to the bottom”.

Ireland, which attracts many multinationals with a corporation tax rate of just 12.5 percent, is strongly opposed.

Speaking to RTE Irish finance minister Pascal Donohoe explained: “It could have a very meaningful effect, and significant effect, on how we conduct corporate tax policy in Ireland.

“It has the potential to have a very big impact on where tax is collected.”