Rishi Sunak will call for “honesty” about the need to reduce spending when he delivers his Budget speech on Wednesday, Treasury sources have said. “You will hear the word honesty used a lot. He will be very clear to people that we’ve spent at wartime levels to get people through this, which was the right thing to do, but this can’t go on forever,” they said. Meanwhile, senior Conservatives including former prime minister David Cameron are warning the Chancellor not to use major tax hikes to balance the books. In an interview with CNN, Mr Cameron said that tax increases “wouldn’t make any sense at all” before the economy was up and running again. His comments come as Tory and Labour MPs plot to thwart an increase in corporation tax, leading Downing Street to threaten to remove the party whip from Tory MPs who rebel against the Budget. Meanwhile, the left-leaning think tank the Institute for Public Policy Research should use increases in CGT, corporation tax, wealth tax and a land value tax to raise £55bn while injecting a further £190bn into the economy to lay the ground for a "balanced recovery."
Read more: The Daily Telegraph
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