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Days before Rachel Reeves unveils further spending cuts as part of her spring statement on the UK economy, the chancellor has admitted she is considering what would amount to a tax break for tech bosses.
The Digital Services Tax, which levies 2 per cent from UK revenues generated by companies with global revenues of more than half a billion, raises about £800 million a year for HMRC.
Lord Mandelson, ambassador to the US, told the FT the “tax itself is under discussion”.
Plugging the gap would be hard, not least when the most vulnerable are losing benefits and services are being further scaled back.
But scrapping the tax is seen as a way to mitigate some of the worst of Donald Trump’s tariffs, since the US president has cited it as an example of unfair trading practices.
