Sir Keir Starmer and Donald Trump spoke about an economic prosperity deal over the phone, Downing Street said.

The leaders spoke about the agreement on Sunday night, Sir Keir’s official spokesman said.

It comes amid reports that a tax on tech giants could be slashed in the spring statement.

Asked if the digital services tax would be axed, the Prime Minister’s official spokesman told reporters: “Firstly, just taking a step back, the UK is working with the United States on an economic prosperity deal, building on our shared strength of that commitment to economic security. As part of those discussions, the Prime Minister and President Trump discussed progress made in those discussions last night.

“The UK will only do a deal in the national interest, which reflects this Government’s mandate to deliver economic stability for British people.”

He added: “I think, in relation to the digital services tax, the Chancellor this morning said that the digital services tax is hugely important.

“It brings in around £800 million a year and ensures that companies pay tax in the country that they’re operating in. So we will continue to make sure that businesses pay their fair share of tax, including businesses in the digital sector.”

The spokesman would not be drawn into saying whether scrapping the digital services tax, which impacts US-based tech giants, made up part of the discussion with President Trump.

UK taxes on big tech firms may be changed as part of a deal to avoid US President Donald Trump's next raft of tariffs, Chancellor Rachel Reeves has suggested.

She said talks are "ongoing" about tweaks to the Digital Services Tax, which affects global tech giants like Amazon and Meta.

The 2% levy introduced in 2020 raises about £800m a year for the UK but reports suggested it could be altered in exchange for the US not imposing more import taxes on the UK, following the barrage of tariffs Mr Trump has already announced.