Conservative MPs say they will block an emergency Budget planned by the Chancellor in the event of a Brexit vote.
This morning George Osborne told the BBC’s Today programme a snap Budget would “have to increase taxes and cut spending” to fill a £30bn hole in the public finances.
He said he would need to raise the basic rate of income tax by 2p in the pound, higher rates by 3p and add 5p in the pound to the 40 per cent inheritance tax rate.
In addition the Chancellor warned of cuts to pensions, the home office, policing and transport.
However, 57 Tory MPs have signed a letter pledging to vote down the “punishment Budget”, Sky News reports.
Leader of the House Chris Grayling said Osborne’s Brexit Budget was based on assumptions and was “not credible economics”.
Speaking to Today, Osborne said: “As chancellor, I would have a responsibility to try to restore stability to the public finances and that would mean an emergency Budget where we would have to increase taxes and cut spending.
“Far from freeing up money to spend on public services as the Leave campaign would like you to believe, quitting the EU would mean less money. Billions less. It’s a lose-lose situation for British families and we shouldn’t risk it.”