Labour will launch a £14bn tax raid on big companies such as Amazon, if the party wins the next general election, under plans to change the way every multinational firm is taxed in Britain.

John McDonnell, the shadow chancellor, is drawing up plans for Labour’s manifesto that he claims would stop companies such as Google and Apple using “arm’s-length” arrangements that allow them to pay tax in countries with lower rates.

Under the plans, detailed in a new report published today, companies would be taxed on the basis of where their sales, assets and labour force are located and not where they have decided to “book” their profits.

The report says: “If multinational X (like Amazon or Google) has 10% of their sales, assets