Keir Starmer faces criticism over potential cuts to the UK's digital services tax affecting major US tech companies like Meta and Amazon. Chancellor Rachel Reeves indicated ongoing discussions that could alter this tax amidst trade negotiations with Trump, who holds tariffs on British goods. Critics, including the Lib Dems and Labour MPs, argue these changes may disproportionately affect the poorest citizens by slashing benefits for disabled individuals, risking welfare for public sector job cuts, and raising ethical concerns regarding economic recovery priorities.
“With the chancellor saying that she is still looking at the digital services tax, just days before the spring statement, then I would be concerned if relief was granted...while at the same time making disabled people pay for the revenue loss.”
“While any changes would not take place in this week's spring statement, the Lib Dems warned Labour was in danger of losing its moral compass.”
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