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Tory MPs to block Osborne’s post-Brexit emergency Budget

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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 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 the basis for Osborne’s Brexit Budget were based on assumptions and was “not credible economics”.

On the BBC’s Today programme, 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.”

He added: “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.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Would he even be Chancellor if we were to vote ‘leave’?

  2. Oh dear, methinks he is in a panic with this kind of last ditch attempt to scare people into making their decision. The Brits have had so much austerity over the last number of years I wonder if they will fall for this.

  3. Absolute [ ] rubbish. How can he know there’ll be a £30Bn hole in the public finances in the event of a vote to leave? If the consequences of a leave vote would be so catastrophically dire, tax rises will surely make things even worse. All he’s doing is damaging the Conservative party’s prospects for re-election in 2020. Labour must be rubbing their hands with glee.

    Another big factor in deciding which way to vote is the right to decide how the UK spends its own money, in which regard http://www.londonlovesbusiness.com/business-news/economic/how-much-do-we-give-the-eu-and-how-much-do-we-get-back/9099.article is enlightening.

    Based on the data for 2013 (okay, a bit out of date but nothing much has changed), the EU decided what to do with €8.2Bn of what we contributed and, of the €6.3Bn it had the good grace to rebate, it not we decided how that should be spent ~ within our own country!

    Why don’t we just keep the entire €14.3Bn (or whatever the figure is now) and decide for ourselves what WE do with ALL of it?

  4. The economy was already slowing in Q1, which was nothing to do with Brexit.
    The £30bn ‘black hole’ is probably already there, and he is looking for an excuse to blame it on someone else.
    When can we be governed by people who have some faith in the Country they are meant to be leading? It maybe time we elected someone who will stand up for UK and stop hiding behind Mrs Mekels trousers.
    The UK has no influence in the EU, (contrary to what the establishment claim), Cameron came back from his great re-negotiation with nothing, and nothing will change if we remain.

  5. Julian Stevens 16th June 2016 at 3:09 pm

    Says George: Quitting the EU would mean less money. Billions less.

    Based on the figures for 2103, it would also mean €8.2Bn MORE.

    So, is he saying that outside the EU, the negative effects on our trade with other countries within it would be in excess of €8.2Bn? If so, he needs to back this up with some credible evidence. If he can’t, it sounds as if he’s suggesting that a vote to leave the EU will kill off all trade with the other countries within it virtually overnight which, of course, is just scaremongering rubbish. What about all the ADDITIONAL trade we could do with countries such as Canada, India and China?

    Should the vote be to leave, disengagement from the EU will take at least a couple of years, if not more, during which time we’ll be able to embark on negotiating alternative trade agreements with its member states. And should those negotiations be obstructed or made needlessly difficult, all who voted to leave will decide that they did the right thing. Would you want to join a club that would make your life as difficult as possible in every way it possibly could if you decided it wasn’t right for you and chose to leave? Hanged if I would.

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