Chancellor Rachel Reeves hasn’t ruled out changes to the UK’s Digital Services Tax on US tech giants as she scrambles to avoid tariffs from Donald Trump’s administration.
Reeves insists that companies operating in the UK should pay taxes there, but negotiations with the US are ongoing. Reports suggest the UK may reduce or scrap the 2% levy affecting firms like Meta and Amazon to sidestep trade penalties before April 2.
Business Secretary Jonathan Reynolds has also been in Washington for discussions, while UK Ambassador Lord Mandelson confirmed that the tax itself is part of the talks.
Meanwhile, the Liberal Democrats are pushing for the tax to be tripled rather than cut. Deputy Leader Daisy Cooper warned that reducing the levy while making welfare cuts would be “robbing disabled people to appease Musk and Trump.”
For now, Reeves is keeping her options open while trying to strike a deal with the White House.
Will the UK Cut Taxes for US Tech Giants? Rachel Reeves Won’t Say
