Senior Labour figures accepted valuable gifts from Google
Senior Labour figures accepted valuable gifts from Google in the days before abandoning a plan to tax digital giants more, openDemocracy can reveal.
Labour’s shadow business secretary Jonathan Reynolds, his senior parliamentary assistant (who is his wife), and Keir Starmer’s political director all attended Glastonbury festival in June as guests of YouTube, which is owned by Google. Including accommodation and ‘hospitality’, Reynolds estimates his Glastonbury package for two was worth £3,377 – significantly more than the cost of two regular tickets, which were £335 each.
The next day, reports emerged that Labour had ditched its proposal to hike tax on digital businesses like Google.
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, Reynolds and his shadow chancellor colleague Rachel Reeves had called for an increase in the tax to 10%, saying the income would be used to fund a slash in tax for small businesses.
Labour shadow business secretary Jonathan Reynolds at last year's party conference in Liverpool. In June, he and his senior parliamentary assistant (who is his wife) attended the Glastonbury festival in June as guests of YouTube, a package worth £3,377
Ian Forsyth/Getty Images
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