Tories are calling for a sales tax on internet giants like Amazon and eBay to support the UK's struggling high street.

The Chancellor of the Exchequer is being urged to introduce the three per cent tax to raise up to £500 million a year.

The money would then be used to ease business rates which have left many high street traders struggling.

The Sun newspaper reports that Tory MP Neil O'Brien is calling for the internet tax and he has the support of other Conservatives.

It is also reported that the Centre for Retail Research believes as many as 20,000 shops could be forced out of business between now and 2020.

The new tax would apply to social media firms, online marketplaces and search engines with worldwide revenues of more than £650 million.