24th Mar 2025 12:35
(Alliance News) - Keir Starmer and Donald Trump spoke about progress on an economic deal between the UK and US, amid reports that a tax on tech firms could be slashed in the spring statement.
The prime minister spoke with the US president about the agreement on Sunday night, Starmer'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 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.
The prime minister's spokesman would not be drawn on whether slashing the tax was part of Starmer's discussions with Trump, and insisted the government would only strike a deal "in the national interest".
Meanwhile, 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".
By David Lynch and Nina Lloyd, PA Political Staff
source: PA
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