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The Guardian - UK
The Guardian - UK
Politics
Rowena Mason Whitehall editor

Starmer is warned against ‘appeasing’ Trump with tax cut for US tech firms

Donald Trump Sir Keir Starmer United States Ed Davey Elon Musk Rachel Reeves Steve Witkoff United Kingdom Vladimir Putin Winston Churchill
Keir Starmer with Donald Trump
The Lib Dems said if Starmer’s Labour cut the digital services tax, it would be tantamount to ‘robbing disabled people to appease Musk and Trump’. Photograph: Kevin Lamarque/Reuters

Keir Starmer has been warned against “appeasing” Donald Trump as he considers reducing a major tax for US tech companies while cutting disability benefits and public sector jobs.

His chancellor, Rachel Reeves, confirmed on Sunday that there were “ongoing” discussions about the UK’s £1bn-a-year digital services tax that affects companies including Meta and Amazon.

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