Tory donors warn Boris Johnson that tax rises will kill off economic recovery
Prominent Tory donors have urged Boris Johnson not to implement tax rises this autumn as they fear it could hamper the post-Covid economic recovery.
Johnson and Rishi Sunak are expected to soon announce a 1 per cent increase in National Insurance in a bid to fix gaps in the health and social care sectors.
Sunak also announced earlier this year that he would increase corporation tax for the country’s most profitable businesses from 2023.
A series of businessmen who have donated millions of pounds to the Tory party told the Sunday Telegraph that they are urging the chancellor to rethink any more tax rises.
It comes after the Financial Times reported on Friday that a secretive club of Tory donors called the Advisory Board have been holding regular meetings with Sunak and Johnson.
Johnny Leavesley, chairman of the Midlands Industrial Council, told the Telegraph that “we are already highly taxed and tax rises this autumn will choke off a recovery when we need it most”.
The Midlands Industrial Council is one of the Conservatives’ largest financial backers and donated £250,000 to the party’s candidates for the 2019 General Election alone.
Leavesley said: “Rishi Sunak has been the perfect Chancellor for the pandemic, generously supporting what has been necessary to keep the economy alive, but now he needs to embrace Thatcherite principles by limiting state spending and cutting taxes to stimulate economic growth.”
Alexander Termerko, a Russian donor who has given almost £1m to the party, said: “It is a mistake to raise taxes. As a party donor and activist, increases in taxes undermine our party manifesto, which stresses the importance of fiscal responsibility and reduction of taxes.
“As a businessman, I see that it will reduce our ability to compete internationally and will squander lots of benefits we received following Brexit. It is very untimely to raise taxes now.”
A government spokesman said last night: “We don’t comment on future tax policy.”