Chancellor faces ‘tough balancing act’ if tax on big tech firms is scrapped

Chancellor of the Exchequer Rachel Reeves will deliver her spring statement on Wednesday (Anthony Devlin/PA) - (PA Wire)

Reducing or removing a tax on big tech companies would have “little impact” on the economy, but will be a “tough balancing act” for the Chancellor to manage, one expert has said.

Media reports have suggested Britain could slash the digital services tax (DST) – a levy on big tech companies – in order to stave off American tariffs by appeasing US President Donald Trump.