Cabinet fears over Rishi's tax rise plans

PRIME Minister Boris Johnson and his Chancellor Rishi Sunak are facing a potential Cabinet revolt over planned tax rises in the next two years.

- David Maddox

A group of senior ministers are deeply unhappy about plans to raise corporation tax on business in 2023 by six per cent.

The current rate of 19 per cent is the lowest in the G20 but Mr Sunak has been persuaded to raise it to 25 per cent to help pay the Covid debt.

It follows furious debate over Mr Johnson’s new social care tax – an extra 1.25 per cent on National Insurance contributions – which overshadowed last week’s Conservative Party conference.

While publicly supporting the Prime Minister, a number of senior ministers have privately attacked the tax-raising policy and fear that it will stifle the economic growth needed to help the UK recover from the cost of Covid and the lockdown.

One Cabinet minister told the Sunday Express: “We have got to stop doing what the bean counters in the Treasury want. They are looking in the short term and not at the longer-term strategic options.”

Another senior minister sarcastically added: “I don’t understand how you can raise taxes and grow the economy – I’m not smart enough.”

The minister added: “Tax is an attack on economic activity, so raising taxes is bad for growth.