Conservative backbenchers have urged the Prime Minister to abandon a plan to increase corporation tax from 19% to 25%.
The move could lead to a rebellion by Tory MPs, highlighting the party’s division over the economy.
In a letter to Rishi Sunak, seven MPs, business leaders and economists asked the Chancellor to “follow a growth agenda” and scrap the plan.
Signatories included former Brexit minister David Jones, former Tory leader Sir Iain Duncan Smith, and European Research Group Chairman Mark Francois.
The group warned that the proposed increase in corporation tax could cost potential new jobs and higher national output. They also stated that the move could undermine the government’s ambition to transform Britain into a “science superpower” and hit hopes for levelling up.
The government, however, maintains that it is “vital” to stick to the plan to halve inflation this year and reduce debt.
A government spokesperson said: “From April, our corporation tax rate will still be the lowest in the G7, keeping the UK internationally competitive, and businesses with profits below £250,000 will be protected from the full rate rise, with 70% of UK companies not facing any increase at all.”
The push from some Tory members to pressure Mr Sunak and Jeremy Hunt to slash taxes in their upcoming budget is the latest in a series of attempts to ease the tax burden on businesses, but the Chancellor has warned that the state of public finances means significant cuts are unlikely.
Story above derived from this News Link: Rishi Sunak rejects calls by senior Tory MPs to scrap corporation tax hike
