Rishi Sunak rejects calls by senior Tories to scrap corporation tax hike as major Budget rebellion looms 🔴 janemerrick23 reports:
But the Treasury insisted it was “vital” that the government stick to its plans to ensure inflation and debt can be reduced this year. Corporation tax at 25 per cent would still be the lowest among the G7 leading economies, government sources said.the Tory MPs and business leaders urged the Prime Minister to “follow a growth agenda”, adding: “We are writing to urge you to reconsider the Government’s plans to increase corporation tax from 19 per cent to 25 per cent in April this year.
Signatories include Simon Clarke, the Conservative Growth Group chairman and a key ally of former prime minister Liz Truss; Greg Smith, chairman of Conservative Way Forward and the Free Market Forum; Mark Francois, the European Research Group chairman; Sir Jake Berry, founder of the Northern Research Group; and Sir John Redwood, chairman of the Thatcherite No Turning Back group.
It was organised by the Centre for Brexit Policy and was also signed by hotelier Sir Rocco Forte and Tim Martin, the Wetherspoons founder and chairman, and follows a warning by ex-PM Ms Truss that the planned corporation tax rise would be “economically detrimental”. But a government spokesperson said: “Growing the economy is one of the Prime Minister’s top priorities, which is why we have maintained record levels of capital investment and R&D spending, as well as continuing to incentivise investment through measures such as the Seed Enterprise Investment Scheme and the now-permanent £1m Annual Investment Allowance.
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