Will Rishi Sunak raise corporation taxes?

In order to raise funds and cope with the cost of the government’s COVID-19 response, Rishi Sunak is planning to reveal plans for a £30bn tax hike.

The tax hikes will be revealed in the November budget and are likely to include a rise in corporation tax and cutting foreign aid.

After former chancellor George Osborne cut corporation tax to 19%, Sunak may raise the figure to 24%, which would raise £12bn in the next year alone.

Stephen Barclay, the chief secretary to the treasury, refused to confirm on deny the raise in corporation tax when speaking on Times Radio. He said: “There are always a whole range of measures and as soon as one starts to say, well I rule this one out you’ll cherry-pick as to which ones one hasn’t done.”

A number of Tory MPs have said that the rise in corporation tax may be counter-productive.

“The focus has to be building on the nascent recovery in the economy which is the surest way to maximise the number of jobs available and balance revenue with spending,” said backbencher Marcus Fysh.

“We must not risk it with talk of counter-productive tax rises. I am sure the chancellor is well aware of this and hope he will consider urgent fiscal incentives to boost activity, investment and productivity,” he added.