The Budget could be an awkward moment for fiscal conservatives

There is no getting around the fact that these are awkward times for fiscal conservatives, such as myself. It has never been harder to make the case for lower taxes. We have the largest national debt for half a century as we come out of the worst recession for three hundred years, with zero political appetite for public spending cuts. It is essential – for both the Conservative party’s political prospects and the country’s economic prospects – that the UK retain our reputation for sound finance. This is why the Treasury Select Committee have been gathering evidence on the options for tax after coronavirus, with our recommendations to be published tomorrow. One thing is clear: there are no easy options for the Chancellor in his budget this Wednesday.

As I have said in Parliament, we need a laser-like focus on growth to reduce debt as a proportion of GDP as rapidly as possible, as took place after the Second World War.