Published: Tue, October 30, 2018
Medical | By Johnnie Horton

United Kingdom to Slap New Tax on Technology Giants

United Kingdom to Slap New Tax on Technology Giants

The Budget has been branded "a bit of a gamble" by a respected economic research group.

The shadow chancellor said he would not reverse changes that benefit higher earners because they added "demand" to the economy and people like head teachers have had a "rough time" in recent years.

Yesterday's budget did indeed contain measures created to increase the tax bills of the transatlantic tech giants, with the chancellor outlining a plan to make as much as £400m a year from the introduction of the UK Digital Services Tax in 2020.

Mr McDonnell's comments also seem to contradict that of Labour MP Emily Thornberry, who criticised the Tory Party over "tax cuts for the rich".

Paul Johnson, director of the Institute for Fiscal Studies, said: "He's just simply chose to spend all of that".

Further, many importers negotiate their annual deals won sales projections and currency rates early in the New Year with overseas producers.

Health spending is the exception, with £20bn extra funding promised to help the NHS and pay for mental health services.

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On Saturday President Trump said the outcome at the Pittsburgh synagogue would have been different if there was armed protection. Myers, the rabbi, said at Sunday's vigil that he was praying with a dozen early worshippers when the gunman appeared at the door.

Mr McDonnell dismissed the Chancellor's claim austerity is coming to an end as he insisted it is "rolling out still".

The rise in excise duty by the rate of inflation does not take place until 1 February.

The IFS said it is not clear yet whether austerity is over.

A judgement on austerity also depends on what is measured, according to the IFS.

The chancellor declared in his Budget that public spending would increase by 1.2%. This year it revised up its forecasts for tax income, which was an unexpected windfall for the government.

And by his arbitrary action to raise duties on wines but not on beer or spirits he has again demonstrated that alcohol is an easy target for a chancellor looking to raise revenue.

"At a time when the United Kingdom must pull out all the stops to attract inward investment with Brexit looming on the horizon, it beggars belief that a Conservative Chancellor should contemplate levying a brand new tax on companies that have already invested heavily in the United Kingdom, employ thousands of people and whose total tax contribution is very often overlooked", he said.

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