UK-US Trade and Tariffs

Lisa Smart Excerpts

Thursday 3rd April 2025 Commons Chamber

[Lisa Smart (Hazel Grove) (LD)]

The US is clearly seeking concessions from the UK, and it has been widely speculated that the UK Government are considering a reduction in the digital services tax as a way of placating Trump and his ally Elon Musk. My hon. Friend the Member for St Albans (Daisy Cooper) asked the Secretary of State this question but I did not quite catch an answer in his response: will he commit today not to cut the digital services tax, as that is the way the tech giants pay their fair share here in the UK?

[Jonathan Reynolds]

The hon. Lady has heard me say repeatedly that I will not go into specific negotiations, but ensuring that not just a US tech company but any tech company pays a fair rate of taxation in the UK, for the economic activity that it has in the UK, is something that all parts of the British Government are committed to—she does not need to be worried about that. In any discussion there will always be a lot of issues that need to be dealt with. In the main, those are trade issues. I understand that there are all kinds of speculation, but speculation is not always correct. I ask all colleagues to bear that in mind and understand that we cannot publicly share every single aspect of such a negotiation. If she is worried about US tech companies, or any tech companies, paying the right rate of tax in the UK, let me say that that is something we are deeply committed to.