Scottish Lib Dem leader to call for increased tax on social media firms

Alex Cole Hamilton will say the move could raise cash to provide "world class mental health services” in Scotland

Author: Paul KellyPublished 4th Nov 2023
Last updated 4th Nov 2023

Social media giants are being urged to mop up the "mental health catastrophe" facing Scotland's youngsters.

At the Scottish Lib Dem conference in Edinburgh on Saturday, leader Alex Cole-Hamilton will call for a tripling of the digital services tax.

The party believes the move could raise cash to provide "world class mental health services” in Scotland.

Social media platforms urged to "pay" for impact on young people

Speaking out about the "dark side of online abuse", Mr Cole-Hamilton will insist that social media providers should "pay" for the impact this can have on the mental health of young people.

Addressing the Scottish Liberal Democrat conference in Edinburgh on Saturday, he will say his party would treble the Digital Services Tax - adding this could raise £1.5 billion across the UK next year alone.

That could "unlock" an additional £150 million for the Scottish Government's budget, with Mr Cole-Hamilton saying the cash could boost mental health services and "save lives".

The Digital Services Tax was introduced by the UK Government in 2020 as a levy of 2% on the revenues of search engines, social media services and online marketplaces.

Mr Cole-Hamilton will tell his party conference the Liberal Democrats would seek to treble that, as he speaks out about his concerns about the impact of social media on children and young people.

Mr Cole-Hamilton will say: "I'm really worried about how much social media is a part of this.

"No escape" for young people from social media abuse

"As a political leader I've seen my fair share of its dark side, of online abuse. But for young people it can feel like there is no escape."

With the majority of young people on social media, many for "big chunks of the day", Mr Cole-Hamilton will add that this is "shattering their mental health".

He will say: "It can impact their sense of self-worth and cause them to hate their own appearance.

"When they are telling us it is doing them harm, and they are, we should listen. Clamping down on harmful content is essential.

"But we need to look deeper at the damage the social media giants have wrought, at the shattered pieces of childhood that lie in the margins of their profits."

Insisting that it is "time for them to pay", Mr Cole-Hamilton will say that Liberal democrats would treble the Digital Services Tax "to raise £1.5 billion next year alone".

And he will add: "That could unlock up to £150 million for the Scottish budget in Barnett consequentials.

Government says Online Safety Act will make UK "safest place in the world" to be online

A UK Government spokesperson said: "The Digital Services Tax ensures that providers of social media platforms pay UK tax on digital services that reflects the value they derive from UK users.

"It is a temporary solution to challenges raised by digitalisation and it has always been our intention to remove the tax once a global solution is in place.

"Our Online Safety Act will make the UK the safest place in the world to be online by placing a legal duty on social media platforms to protect children from bullying and violent content - or face significant fines."

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