UK Chancellor of the Exchequer, Rishi Sunak looks set to face considerable backlash from
Conservative Party Backbenchers after reports were leaked showing Treasury plans to raise
tax in his upcoming Autumn Statement.
The news comes as no great surprise, after a Summer of Government of continued support for business across the wider economy which included the furlough scheme which is set to end in October.
Many, who have praised the furlough scheme argued that it should continue into the New Year, following the example of Germany. Yet, there has been little forethought as to how the country should pay for it.
Reports show the Chancellor is looking at proposals to raise over 20 billion pounds in order to plug the gap in public finances after pandemic spending. One of the options that Mr Sunak is reportedly looking at is raising cooperation tax from 19% to 24%, additionally fuel duty is set to be raised and there are proposals to align capital gains tax with income tax.
Business leaders are distinctly concerned that an increase in corporation tax will significantly limit post pandemic recovery and growth at the precise moment that recovery will be crucial, in relation to the end of the Brexit transition period.
Marcus Fysh MP, is one of many Tory backbenchers who have begun a chorus of disquiet and reflect the general mood, saying:
"Tax rises are the wrong response to the current situation... we need to help the economy not strangle it."