[ad_1]
Angry conservative donors threaten to ‘turn off funding taps’ if Rishi Sunak proceeds with his ‘drench the rich’ tax raid to pay for Covid bailouts
- Conservative Donors Are Angry At Reports Of Rishi Sunak’s Covid Tax Raid ‘Soaking The Rich’
- They have told the party that they will ‘close the financing taps’ if taxes go up
- Chancellor Sunak has told allies that he needs to ‘find ways to get the money back’
Conservative donors have reacted furiously to reports of Rishi Sunak’s “drench the rich” plan to help pay for the cost of Covid.
They have privately warned the party that they will “close the funding taps” if the chancellor decides to go ahead with the controversial plan.
The ultimatum came amid new fears of tax increases after it emerged that Sunak had told his allies that he needs to “find ways to get that money back.”
A source told The Mail on Sunday that the comment, made this summer, made clear the Chancellor’s “fiscally orthodox” credentials. Yet it has only been a week since many Tory MPs and supporters reacted angrily to reports that Treasury officials were preparing a £ 30bn hit for the rich and business in the November budget.
Conservative donors have reacted furiously to reports of Rishi Sunak’s “drench the rich” plan to help pay for the cost of Covid. They have privately warned the party that they will ‘close the financing taps’ if the chancellor decides to go ahead with the controversial plan
The plans were dubbed Sunak’s fight against the dizzying cost of the pandemic, which has seen the national debt exceed £ 2 trillion for the first time.
But last night, party benefactors with close ties to the City of London were particularly outraged by a proposal to raise corporate tax from 19 percent to 24 percent, a move that would raise £ 12 billion next year alone.
In conservative counties, the ire centered on a plan for a big increase in capital gains tax, a measure that would hit owners of second homes and rental properties when they come to sell. Government sources downplayed the reports as “speculation.”
Sunak himself tried to reassure the entrance of Conservative MPs in 2019 that there would be no “ horror show of tax increases with no end in sight. ”
But yesterday, The Mail on Sunday was told that just a few weeks ago, Mr. Sunak had reinforced his determination to get the money back.
Boris Johnson is understood to have resisted calls to raise taxes to pay for Covid bailouts
One insider said that despite concerns about tax increases stifling early signs of growth, the chancellor “thinks that if he doesn’t raise taxes in the first half of Parliament, then he’s trying to convince Tory MPs that we must. before the elections “.
Last night, a source close to the chancellor said: ‘It cannot surprise anyone that a conservative government is eager to ensure that the finances of this country are stable and sound. It is right.
“The alternative is to continue writing checks that our children and grandchildren will end up having to cash.”
But yesterday, a conservative backbencher said: “Rishi is losing his sense of the success of Eat Out To Help Out, which reflects how lowering taxes can be beneficial.”
The deputy called the proposed tax increases “crazy,” adding: “Raising taxes right now is the dumbest thing you can do.”
The dispute came as sources in the insurance industry warned the Treasury not to increase insurance premiums as a way to pay for the pandemic.
