Labour questioned over concessions in £30bn tech deal with US firms

Labour is facing questions about what concessions were made to secure a multi‑billion‑pound agreement with US technology companies after Prime Minister Sir Keir Starmer signed a "tech prosperity" deal during US President Donald Trump’s state visit this week.

The agreement, announced by ministers as a step change in the UK‑US relationship on technology, could bring around £30 billion in commercial activity alongside £31 billion of pledged investment from leading US tech firms. The package is designed to enable closer cooperation on artificial intelligence, quantum computing and nuclear power and to accelerate the development of medicines and other life‑saving treatments.

Ministers said the investment commitments include about £22 billion from Microsoft and a £5 billion AI investment from Google over the next two years, earmarked in part for a data centre in Hertfordshire. Sir Keir said the deal demonstrated "a general step change" in Britain’s relationship with the United States that would deliver "growth, security and opportunity up and down the country."

The Conservative opposition has pressed for detail on what the government offered in return. Shadow technology secretary Julia Lopez said Labour "must be open about what concessions they have made to get this deal over the line, and who instead they'll be trying to tax to make up for lost revenue." Conservatives have pointed to two specific areas of concern: the future of the UK’s digital services tax and potential copyright exceptions for training AI systems.

The digital services tax, a 2 percent levy on revenues from search engines and social media platforms, raises roughly £800 million a year and has long been criticised by some US companies. President Trump has publicly described the levy as an unfair tax targeting American firms. Separately, technology companies have sought more permissive rules that would allow use of copyrighted material from the UK’s creative industries in AI training without paying licensing fees, a proposal that has prompted concern from artists, authors and publishers.

Government statements on the deal have highlighted the anticipated economic benefits and the boost to UK AI infrastructure. Supporters say foreign direct investment and collaboration with major US tech firms could advance research in healthcare and other sectors and create jobs. Microsoft’s and Google’s announced commitments are intended to fund data capacity and AI development, which proponents argue will speed up innovation in diagnostics and treatments.

Sceptics have raised practical and policy questions. Energy use by large data centres has drawn scrutiny from environmental campaigners and some politicians worried about the UK’s Net Zero targets. Tory energy spokesman Claire Coutinho said the country needed "cheap, reliable and abundant energy" to fully capitalise on AI and advanced manufacturing and argued that Labour’s approach to Net Zero could hinder that goal.

The debate over concessions, tax policy and copyright exceptions is likely to continue as lawmakers and industry representatives seek further detail on the mechanisms of the deal and any regulatory changes that could accompany the investment. Ministers have framed the agreement as part of a broader strategic partnership on technology and security; opposition politicians have called for transparency about trade‑offs made to secure corporate investment.

Officials have not published a full list of terms detailing any changes to tax or copyright law tied to the package. Parliamentary and industry scrutiny is expected in the coming weeks as questions mount about how the financial commitments will be realised and what regulatory adjustments, if any, will follow.