An online sales tax to help high street shops has in effect been ruled out by the Treasury because it would fall foul of EU rules.
The Times has learnt that Mel Stride, financial secretary to the Treasury, has written to Nicky Morgan, chairwoman of the Treasury select committee, to say there was a “high risk” that any such tax would breach the bloc’s state aid rules.
The UK is due to leave the European Union on March 29 but under the draft withdrawal agreement Britain has accepted “dynamic alignment” with Brussels on state-aid rules.
