Plans revealed in the Budget to impose a new tax on sales by technology giants has been attacked by US political leaders and business groups.

They say the proposal would violate tax agreements by targeting US firms and warned the tax could spark US retaliation and hurt prospects for a US-UK trade deal.

On Wednesday, Representative Kevin Brady, a Republican from Texas, said: “If the United Kingdom or other countries proceed, that will prompt a review of our US tax and regulatory approach to determine what actions are appropriate to ensure a level playing field in global markets.”

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The 40,000 British employees of Jaguar Land Rover face further job cuts after Britain’s biggest carmaker launched a £2.5bn plan to reduce costs and free up cash.

JLR announced its intentions on Wednesday after slumping £90m into the red in the three months to September, hit by falling sales in China and Europe.