Tory rebels are ready to join Labour to defeat plans to raise corporation tax.
Chancellor Rishi Sunak is expected to use next week’s budget to announce a “pathway” to increase corporation tax from 19% to 25% over the course of the current parliament.
The Labour leader, Sir Keir Starmer has said Labour will vote against any plans to raise taxes as Britain emerges from the pandemic, though it would support a hike later.
He could be joined by a “significant number” of Conservative MPs, including ministers, despite the government saying that it will consider any rebellion on the budget as a vote of confidence against the prime minister.
The chancellor is expected to use President Biden’s plans to raise corporation taxes and business rates in the US as political cover.
