Chancellor hits tech giants in the pocket


The tax follows increasing pressure from both the public and politicians to take action against multi-billion dollar firms paying low rates of tax in the UK.

Theresa May said today that an early general election would not be in the national interest, insisting that yesterday's budget was not meant to pave the way for an early vote.

However, the industry warns that digital tax services could discourage tech investment.

"It's not tax rises and it's not the NHS that Mr. Hammond is willing to gamble on, it's the public finances".

May was attending the Northern Future Forum in the Norwegian capital with counterparts from the five Nordic and three Baltic countries.

Income tax cuts were part of the budget's appeal for some - but critics claim an increase in the national insurance rate band will effectively wipe out much of the benefit for higher earners.

Asked whether this was the case on ITV's Good Morning Britain he said: "I hope not".

A freeze on Spirits Duty will save 30p on a bottle of Scotch compared to the inflation assumption in the Office for Budget Responsibility's forecast, the Chancellor said.

On a narrow definition, Mr Hammond's package could be seen as an "end to austerity, said Mr Johnson".

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The IFS said it was debatable whether the budget heralded the end of austerity, but it added that the plans marked a change of fiscal direction for Britain.

The cuts were criticised as "tax cuts for the rich" by shadow foreign secretary Emily Thornberry on Monday and former Labour minister Andy Burnham said on Tuesday he did not understand Mr McDonnell's support for them.

"Mr Hammond said it would put "£130 in the pocket of a typical basic rate taxpayer".

Britain's finance minister Philip Hammond called out on tech companies in his annual budget speech, saying that it is not "sustainable" or "fair" for digital platform businesses to generate income in the United Kingdom without paying the appropriate amount of taxes.

Higher earners would have had £860 a year savings after the tax cuts.

She said: 'We are ending austerity, we are bringing debt down, we are putting more money into our public services'.

But the spectre of a no-deal Brexit hung over the 72-minute statement, with the Office for Budget Responsibility (OBR) warning that failure to reach agreement with Brussels would hit the economy hard.

He also promised extra funding for health and social care - confirming extra cash for mental health services and £650 million for English councils struggling to cope with rising care bills.