LABOUR demanded yesterday that the government’s spending watchdog investigate the shadowy tax deal struck with Google.

Shadow Treasury secretary Seema Malhotra called for the National Audit Office (NAO) to shed light on the process which saw Google agree to a £130 million payment to the Treasury last week.

The deal will see the transnational tech company pay a corporation tax rate of just 3 per cent following profits of £6 billion in Britain over the past decade.