Theresa May will on Wednesday pledge to use low tax and “smart regulation” to make post-Brexit Britain an economic powerhouse and the envy of Europe.

The Prime Minister will tell an audience in the United States that Britain will have “the lowest rate of corporation tax in the G20” after leaving the EU, making it “one of the most business-friendly economies in the world”.

As well as being a sales pitch to foreign investors, Mrs May’s comments will be seen as an attempt to convince Eurosceptics that she can be trusted to maximise the benefits of Brexit as she prepares for a challenging Conservative Party conference next week.

However, she has put herself on a collision course with Cabinet colleagues who want her to push for a Canada-style deal by suggesting it would be worse for the UK than no deal.

Mrs May’s chances of getting a Brexit deal based on her Chequers plan through Parliament were dealt a severe blow as Eurosceptic Tory MPs hardened their position against it.