Overview

• The UK government is in talks with the US to prevent tariffs on British steel, with discussions centered on possibly altering or scrapping the digital services tax (DST).
• The DST, introduced in 2020, raises £800m annually by taxing large tech companies like Meta and Amazon, but has been criticized by the US as discriminatory.
• Chancellor Rachel Reeves has confirmed ongoing negotiations, emphasizing the need to balance reducing tariffs with maintaining fair taxation policies.
• The Liberal Democrats and some Labour MPs have criticized potential DST changes, arguing they would benefit US tech giants while welfare cuts disproportionately impact vulnerable populations.
• Labour's recent welfare cuts, including £5bn in disability benefit reductions, have intensified domestic criticism as the government navigates trade talks with the US.