British Prime Minister Keir Starmer has discussed "progress" on the UK-US trade agreement in a phone call with President Donald Trump, Downing Street reported.

Late on March 23, the two leaders had a "brief conversation to update on progress made on the economic prosperity deal," a spokesman for the British prime minister said.

This comes amid reports in the British media that the government is considering scrapping the tax on tech giants in a bid to stave off Trump's US tariffs.

Starmer's spokesman did not say whether a cut in the digital services tax was mentioned during the call, but said the UK would only strike a deal "in the national interest".

"We will continue to ensure that businesses pay their fair share of tax, including businesses in the digital sector," the spokesman added.

The US is the UK's biggest trading partner. The two countries have invested more than $1.6 trillion in each other's economies. 

Britain had hoped to sign a free trade agreement with the US when it left the EU in 2020, but negotiations quickly broke down.

Officials are now believed to be discussing a much smaller deal, possibly tailored to specific industries such as technology and artificial intelligence. | BGNES