Government digital services tax takes aim at Google, Amazon and Facebook

Bath England. The historic city of Bath a UNESCO World Heritage site is considering introducing a Clean Air

Image Mr Hammond wants mental and physical health to be treated equally

From 2006 to 2011, Google paid $16 million in taxes on $18 billion revenue in the UK. We can not simply talk forever. Companies have been accused of falsely reporting or reducing profits in order to pay less tax. This "Google tax" will come into effect in April 2020 and like the regulation introduced within the gaming industry is created to profit from the shift to online commerce.

Apple, Google and Facebook have been criticised for paying little taxes in previous years, largely by centring their United Kingdom operations in Ireland to avoid higher charges.

It is aimed, Hammond said, at "established tech giants" rather than startups, principally Amazon, eBay, Facebook and Google.

First, the digital services tax will only come into effect in 2020 if a global agreement can not be made with the OECD and G20 by then, and second, even if it does come into force, it would only be a temporary measure until such a global agreement were implemented.

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The chancellor also suggested that a Brexit deal could trigger more tax cuts and increased public service spending. But speaking later on BBC Radio 4's Today programme, Mr Hammond said: 'When you make a promise to the electorate and they elect you then you have an obligation to deliver on that promise.' The Institute for Fiscal Studies yesterday said the Conservatives had pulled nearly a million people into the higher tax bracket in the past eight years.

A 2% tax would be applied. Hammond criticised the slow progress the two organisations have made, calling it "painfully slow".

But no matter what Hammond announced there is a strong possibility that without a solid Brexit agreement, a new budget, new forecasts and different policy priorities may well have to be considered.

At the moment, Macron's proposal for a three per cent levy is being blocked by a number of countries who claim that it would not raise anywhere near enough, and that it could end up costing more to collect than it raises.

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The Chancellor's move to reverse previous cuts to UC was "a small increase in generosity compared to the cuts to working age benefits introduced since 2015 and small relative to cuts still to come", said Mr Johnson.

The pressure has been on for May's administration.

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.

Police are warning they don't have the resources to fight crime; school principals are marching with demands to help children; and the military is concerned about its eroding ability to defend the nation.

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Governments worldwide have started pushing for tech companies to contribute more to public coffers.

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