No 10 Starmer and Trump spoke about progress on economic deal on Sunday
24/03/2025
Sir Keir Starmer and Donald Trump spoke about progress on an economic deal between the UK and US, amid reports that a tax on tech giants could be slashed and as the Government eyes up cuts at the spring statement.
The Prime Minister spoke with the US president about the agreement on Sunday night, Sir Keir’s official spokesman said.
Media reports have suggested Britain could slash the digital services tax – a levy on big tech companies – in order to stave off American tariffs.
Reports that the tax could be slashed or abolished come as Chancellor Rachel Reeves is expected to announce spending cuts for some Government departments in her spring statement on Wednesday, after having made cuts to welfare which have proved unpopular with Labour backbenchers.
The Prime Minister’s spokesman would not be drawn on whether slashing the digital services tax was part of Sir Keir’s discussions with Mr Trump, and insisted the Government would only strike a deal “in the national interest”.
Meanwhile, Ms Reeves said she does not “recognise” reports ministers may means-test free school meals as part of the cost-cutting drive across Government and insisted the digital services tax was “hugely important”.
Asked whether digital services tax would be scrapped, the PM’s spokesman told reporters: “Firstly, just taking a step back, the UK is working with the United States on an economic prosperity deal, building on our shared strength of that commitment to economic security.
“As part of those discussions, the Prime Minister and President Trump discussed progress made in those discussions last night.
“The UK will only do a deal in the national interest, which reflects this Government’s mandate to deliver economic stability for British people.”
Ms Reeves, meanwhile, described the 2% tax on social media companies, search engines and digital marketplaces as “hugely important”, adding that it brings in around £800 million a year.
“So, we will continue to make sure that businesses pay their fair share of tax, including businesses in the digital sector,” the Chancellor told broadcasters.
Published: by Radio NewsHub
