EX-Chancellor George Osborne has blasted Rishi Sunak’s plan to hike corporation tax — warning it will put businesses off investing in Britain. In a blistering tirade, he said the move is a “mistake” which suggests the UK is “not a particularly enterprising or pro-business place”. He also warned that fuel duty can never be put […]
EX-Chancellor George Osborne has blasted Rishi Sunak’s plan to hike corporation tax — warning it will put businesses off investing in Britain.
In a blistering tirade, he said the move is a “mistake” which suggests the UK is “not a particularly enterprising or pro-business place”.
He also warned that fuel duty can never be put up because it would cause such a stink among voters.
Mr Osborne, who spent six years leading the Treasury, famously slashed Corporation Tax to stop businesses fleeing Britain.
In fiery comments which risk igniting a Tory civil war, he accused his successor of gambling with Britain’s pro business rep.
He told an IFG think-tank event: “I don’t want to criticise Rishi Sunak because he’s doing a pretty good job in difficult circumstances.
“But I would say the idea you can increase Britain’s business tax by 25 per cent and there will be no consequence, I think is a mistake.
“Taxes have consequences, and we will wait to see if this tax increase does go ahead, what impact it will have.”
He added: “I think you’ve got to be careful as a country what signals you are sending around the world.
“You are just sending a message around the world that Britain is not a particularly enterprising or pro-business place at a very moment when you want to be encouraging that in a recovery.”
Mr Sunak announced bombshell plans to raise corporation tax from 19 per cent to 25 per cent at the Budget.
The rise will kick in in April 2023.
But he froze fuel duty for the 11th year on the trot in a victory for The Sun’s decade-long Keep It Down campaign.
Both Mr Osborne and Labour ex Chancellor Alistair Darling said no government will ever be able to put the tax up because it would be so unpopular with drivers.
Mr Osborne said the motoring tax has become a “no go” levy.
He added: “Despite the fact that oil prices have fallen quite dramatically over the last six or seven years, I don’t think any Chancellor was ever going to be able to put up fuel duty.”
Mr Sunak has insisted Britain will remain globally competitive even when the higher corporation tax rates kick in.
The tax rise is necessary to pay down the massive Covid-shaped hole in the nation’s finances, the Chancellor has said.
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