UK taxes on big tech firms may be changed as part of a deal to avoid US President Donald Trump’s next raft of tariffs, Chancellor Rachel Reeves has suggested.
She said talks are “ongoing” about tweaks to the Digital Services Tax (DST), which affects global tech giants like Amazon and Meta.
The 2% levy introduced in 2020 raises about £800m a year for the UK, but the BBC understands it could be altered in exchange for the US not imposing more import taxes on the UK, following the barrage of tariffs Trump has already announced.
The potential change was criticised by the Liberal Democrats, who said Labour is “at risk of losing its moral compass”.
I’m wondering what UK based tech companies are critically dependent on American customers? My gut would have said it’s better to accept the reciprocal tariffs.
Unfortunately, it may be a broader attack: “we’re going to tax all steel imports unless you stop trying to make the broligarchs pay tax”. Wonder if they’ll force us to lower food standards too.