Philip Hammond will introduce a Digital Services Tax in crackdown on tax-dodging web giants
The new levy was the gem of his keynote speech to the Tories’ annual conference
TAX-DODGING tech giants will be forced to stump up more under the Chancellor’s 21st-century blueprint to defeat Corbynism.
Philip Hammond delighted Tory conference activists with his surprise vow to introduce a Digital Services Tax.
The levy on international profits made from users in Britain by California-based giants such as Facebook and Google will recoup hundreds of millions of pounds.
Mr Hammond wants it in place in one to two years if a global agreements on taxing tech firms still cannot be reached. The crowd-pleaser was the gem of his keynote speech to the Tories’ annual conference in Birmingham.
But he also used it to spell out a vision to harness the unfolding technology revolution to improve angry Brits’ lives. If was Mr Hammond’s rival offer to defeat hard-left Labour leader Jeremy Corbyn’s Socialist blueprint.
Mr Hammond told the conference: “Global internet giants must contribute fairly to funding our public services. The best way to tax international companies is through international agreements.
“But the time for talking is coming to an end and the stalling has to stop. If we cannot reach agreement, the UK will go it alone with a Digital Services Tax of its own.”
The Chancellor will push ahead with the move after losing patience with the US.
Despite repeated promises for global action to end the tax dodge, President Trump’s administration is still stalling on a solution as it reaps billions from the firms, with so many based on the US’s West Coast.
Britain is instead now looking at Europe-wide action, as France is also keen for something to be done. The Treasury is also consulting on a second online levy, an Online Sales Tax, to force digital retailers such as Amazon to pay more tax too.
But sources close to the Chancellor said he is going cold on that as he fears the giants will just pass it straight on to consumers.
The Cabinet has been under heavy pressure to combat Mr Corbyn’s polished offer of Socialist solutions to angry voters’ woes during a successful Labour conference last week.
Mr Hammond tackled the Labour boss head-on yesterday, by pledging to “harness the power of the market economy” instead of “a discredited ideology that will never solve real-world problems”.
He insisted Tories must face up to the anger among many British workers, saying: “Too many feel they are working for the system, but the system isn’t working for them.
“So our challenge is to ensure 21st-century capitalism delivers for those people. It will be this technological transformation, and how we manage it — not Brexit — that will define the future of our country and our party.”
Mr Hammond added: “Show them that, crucially, the change that technology is driving will address their concerns, not make them worse.
“If we look for a moment like the party of “no change”, then we should not be surprised that some will be tempted by the dangerous populism of our opponents.”
Mr Hammond also answered the calls of big business who have been stung by PM Theresa May’s attack on excess profits and boardroom culture. Tory donor and City billionaire Michael Spencer said the party had “lost its way” on business, accusing the PM of “letting herself down”.
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But the Chancellor said: “Let me say it, loud and clear: the Conservative Party is, and always will be, the party of business. That means we listen to business.” And in a change of tone on Brexit, a more positive Mr Hammond also predicted a “deal dividend” that could fund tax cuts and public service spending once a deal is reached.
He also said the Treasury was keeping sufficient “fiscal firepower” to hand to deal with any economic fallout from a No-Deal Brexit.
BRITAIN still lacks the confidence to intervene in foreign wars due to the disasters of Iraq and Afghanistan, Defence Secretary Gavin Williamson has said.
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Conference diary
by Harry Cole
THERESA May had party bosses on the Tory backbench 1922 Committee blushing by making a rather risque gag about them giving her pleasure. But she quickly told hubby Philip “please don’t worry”.
LIZ Truss says a German airline turned her into a “radicalised” feminist when she was 12 years old. They gave her brother a pilot’s badge, but she got a stewardess’s one.
AIRPORT-style security guards are making Tory women spray their own perfume on their skin to prove it’s not acid or Novichok on the way into conference. “The place smells like a cheap perfumery,” complained one MP.
DULL Culture Secretary Jeremy Wright scrapped plans to give his speech as a hologram, but still appeared a little flat.
Conference highlights
- Gag of the day: Ruth Davidson compared the Welsh Tory leadership election to Welsh rugby commentary: “Paul Davies beat Suzy Davies to replace Andrew Davies.”
- Hero of the day: Home Secretary Sajid Javid won applause when he announced that he would give the £39billion EU divorce bill “back to the people” as “they’re taxed enough” if there was a No Deal.
- Villain of the day: Chancellor Philip Hammond did a belting impression of his arch-rival Boris Johnson — but then disappointed journalists by refusing permission to release the audio.
- Leadership bid of the day: Four Cabinet Ministers have told The Sun that they are expecting an attempt to replace Mrs May as Prime Minister will begin with a leadership election next April — straight after Brexit.
- Brown nose of the day: Michael Gove’s own wife Sarah Vine appears to have backed his rival for the Conservative leadership. She gushed over Twitter that “Dominic Raab is great.”
