One expert has said the perception of lowering taxes on big businesses while making government spending cuts would likely face criticism.
Chancellor Rachel Reeves faces a difficult decision regarding the UK's digital services tax (DST) on big tech companies. Scrapping or reducing the tax, potentially to appease the US and avoid tariffs under a possible Trump administration return, would have minimal economic impact but could draw criticism for favoring big businesses while cutting government spending and welfare. Failure to appease the US could lead to new tariffs and further economic strain, while the global tax reform intended to replace DSTs faces uncertainty due to US opposition.
