Downing Street on Thursday warned Conservative MPs they could face disciplinary action if they vote against measures in chancellor Rishi Sunak’s Budget, as Tory unease grows about possible tax rises.
Boris Johnson’s press secretary, asked whether Budget votes in the House of Commons were considered a confidence issue, replied: “Yes.” Rebels in such votes are normally thrown out of the parliamentary party.
Sunak is expected to announce significant rises in corporation tax in his Budget on March 3 and has been urged by his advisers on tax simplification to make major reforms to capital gains tax.
The chancellor is preparing his first measures next Wednesday to start to repair the public finances after spending about £280bn on emergency support for businesses and households during the coronavirus crisis.
Although the Treasury declined to comment on tax issues, senior Conservatives warned Sunak to be cautious and to avoid undermining any economic recovery with…