DAYS before a Labour U-turn on a major tax plan for digital companies, senior Labour representatives accepted thousands of pounds of gifts from…
The Digital Services Tax, introduced in 2020, is a 2% levy on the UK income of online companies like search engines and social media platforms.
In August last year, Labour’s shadow business secretary Jonathan Reynolds and shadow chancellor colleague Rachel Reeves called for an increase in the tax to 10%, saying the income would raise an estimated £3 billion and be used to fund aHowever, Reynolds, his wife who is his senior parliamentary assistant, and Keir Starmer’s political director all attended Glastonbury in June as guests of YouTube.
On June 5, Reynolds was still talking about the tax plan increase, yet on June 26 this year, the day after Glastonbury ended, The Timesthe policy had been ditched, with Labour saying it had “no plans” to raise the digital service tax when in government. Reynolds declined to comment. Including accommodation and hospitality, Reynolds estimates the gifted package for two was worth £3377, according to his register of interests. Regular tickets for the event cost £335 each.
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