Coronavirus: No Tax Increase ‘Horror Show’, Rishi Sunak Tells Conservative MPs

Chancellor Rishi Sunak has assured newly elected Conservative MPs that there will be no “horror display of tax increases with no end in sight” as the government deals with the costs of the coronavirus.

He urged the 2019 Conservatives to show confidence to overcome the “short-term challenges” facing the party.

Some MPs have expressed fears that the U-turns are damaging the government’s position.

Sunak accidentally revealed the wording of his statement while holding his notes outside 11 Downing Street.

The Conservative Party, which won an 80-seat majority in the December general election, has seen its lead in the opinion poll on the Labor cut in recent weeks.

This has raised concerns among some MPs who won seats in the traditional Labor heartland in the Midlands and the North of England, previously known as its “red wall”.

An unnamed “red wall” conservative told the Press Association that MPs in these areas, and others in the fringe seats, were “nervous” after a series of U-turns on issues including test results, the use of face covers and financing for school meals. They described the situation as a “mega disaster”.

And Sir Geoffrey Clifton-Brown, treasurer of the 1922 Conservative House Committee, warned against “self-aims”, saying, “We may have a large majority, but that still does not mean that we should not be as competent as possible as a government.” .

It was reported over the weekend that the Treasury is considering substantial corporate tax increases and changes to capital gains tax to cope with the huge costs of the coronavirus. But the government dismissed this as “speculation.”

The wording of Sunak’s statement, read during a meeting in Parliament on Wednesday with Conservative MPs elected for the first time in 2019, which was also attended by the prime minister, was revealed when a photographer noticed the chancellor holding a sheet of script as he left 11 Downing Street.

It said: “We will have to do some difficult things, but I promise you that if we trust each other we will be able to overcome the challenges in the short term.”

Referring to reports that there could be tax increases to pay for costs incurred during the pandemic, including the licensing plan, he added: “This is not a display of horror of tax increases with no end in sight.”

‘More choppy waters’

He continued: “But it does mean treating British people with respect, being honest with them about the challenges we face and showing them how we plan to correct our public finances and give our country the low-tax, dynamic economy that we all want.” see.”

Government sources denied that revealing the chancellor’s words in this way was “shameful”, adding that they would have become a matter of public record anyway.

Discussing the coronavirus crisis, Boris Johnson told MPs: “I know it has been difficult. I must warn you that it is about to get more difficult. The waters are about to get more rough. But we are going to deal with it.”

The prime minister faces a meeting of all secondary Conservative MPs later on Wednesday, when the 1922 Committee meets for the first time since Parliament’s summer recess.