Public sector pay. Re-negotiating the energy price guarantee. Another fuel duty freeze. Jeremy Hunt’s first Budget on 15 March is certainly fraught with difficult challenges. Few Tories in Westminster are expecting much magic from the Chancellor, despite the surprise January budget surplus. And one reason for this is that Hunt is still pressing on with his corporation tax hike, which is due to go up from 19 per cent to 25 per cent for the UK’s largest companies in April.
This tax rise is already facing a possible rebellion from a range of backbench factions whose membership totals to around 150 MPs. Simon Clarke, Jake Berry and Mark Francois – the respective chairmen of the Conservative Growth Group (CGG), the Northern Research Group (NRG) and the European Research Group (ERG) – have already written a letter urging a rethink of the plans. It was also co-signed by Greg Smith and John Redwood, who head the Thatcherite campaign groups Conservative Way Forward and No Turning Back.
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