George Osborne faces Tory revolt over plan for 'Brexit budget'

Tory revolt: George Osborne
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George Osborne was hit by a full-blown Tory revolt today as 57 MPs threatened to torpedo an emergency post-Brexit budget which could put 2p on the basic rate of income tax.

They bluntly told the Chancellor that his position would become “untenable” if he sought to ram a series of tax hikes through the Commons to deal with a predicted economic blow to Britain from quitting the EU.

The move plunged the Tory party into deeper civil war. It also raised further questions over whether David Cameron and Mr Osborne could survive a feared bloodbath at Westminster even if the country votes to remain in the EU.

The Chancellor infuriated Brexiters this morning by unveiling plans for an emergency budget after the June 23 referendum if the nation’s verdict is to Leave.

Warning of a £30 billion “black hole” in Britain’s finances from an economic maelstrom following an Out vote, he raised the prospect of the basic rate of income tax having to increase from 20p to 22p, the top rate by 3p to 43p, and inheritance tax by 5p to 45p in the pound.

Alcohol and fuel duties could jump five per cent.

Spending on the NHS, schools and defence may also be reduced by two per cent, with £2 billion chopped off pensions and a further £15 billion of cuts to services such as transport, police and local government.

But in a dramatic escalation of Tory infighting, 57 MPs backed a statement telling Mr Osborne that “if he were to proceed with these proposals, the Chancellor’s position would become untenable.” The rebels, led by former minister Iain Duncan Smith, who is MP for Chingford and Woodford Green, also included Romford MP Andrew Rosindell, Spelthorne’s Kwasi Kwarteng, Harrow East’s Bob Blackman, Enfield Southgate MP David Burrowes and Hendon’s Matthew Offord.

Boris Johnson, seen as a leadership rival to Mr Osborne, had not signed the statement as of this morning.

The statement stressed: “We find it incredible that the Chancellor could seriously be threatening to renege on so many manifesto pledges.”

Mr Duncan Smith said:“Project Fear has really gone completely into hyperspace.” But Mr Osborne insisted he would have no choice but to act to prevent “chaos” in the public finances and “huge” economic in-stability.

Meanwhile Vote Leave was unveiling proposed new laws, if Britain quits, to limit European courts’ powers and halt the free movement of migrants.

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