Labour was facing questions last night about what concessions were made to secure a multi-billion-pound deal with US tech giants.
As part of Donald Trump‘s State visit this week, Sir Keir Starmer has struck an agreement that could bring billions of pounds of investment to the UK.
It will enable both countries to cooperate on areas such as artificial intelligence (AI), quantum computing and nuclear power.
Sir Keir said the deal showed ‘a general step change’ in Britain’s relationship with the US that would deliver ‘growth, security and opportunity up and down the country‘.
But the Tories asked what the Prime Minister has offered in exchange for the £30 billion deal.
US tech firms have lobbied to scrap the digital services tax and for copyright exceptions so they can use material from the UK’s creative industries.
Julia Lopez, the shadow technology secretary, said: ‘Labour must be open about what concessions they have made to get this deal over the line, and who instead they’ll be trying to tax to make up for lost revenue.’
There are concerns that the digital services tax could be on the table as the price for any deal on technology with the US. The tax is a 2 per cent levy on online search engines and social media which raises about £800 million a year.
With Donald Trump (right) on his State visit this week, Sir Keir Starmer (left) has struck an agreement that could bring billions of pounds of investment to the UK
Alongside the deal, Britain will benefit from £31 billion of investment from the US’s leading technology companies, including £22 billion from Microsoft
Shadow technology secretary Julie Lopez (above) has asked what the Prime Minister has offered in exchange for the deal
The US President has made clear he sees it as an unfair tax targeting American firms.
There are also concerns the UK could side with AI firms who want to use copyrighted material – including from artists and publishers – for free.
Alongside the deal, Britain will benefit from £31 billion of investment from the US’s leading technology companies, including £22 billion from Microsoft. The outlay will help fund an expansion of AI infrastructure.
The ‘tech prosperity deal’ could speed up the development of medicines, life-saving treatments and improved cancer care.
Google will invest £5 billion in AI over the next two years, which will go towards a data centre in Hertfordshire.
But there are concerns about the energy such centres use and whether they imperil Labour’s Net Zero goals.
Tory energy spokesman Claire Coutinho said: ‘Britain will not grow or make the most of AI or advanced manufacturing without access to cheap, reliable and abundant energy. Labour’s obsession with Net Zero is delivering the opposite.’