London Daily

Focus on the big picture.
Wednesday, Jul 29, 2026

No tax rise 'horror show', Sunak tells Tory MPs

No tax rise 'horror show', Sunak tells Tory MPs

Chancellor Rishi Sunak has reassured recently-elected Tory MPs there will not be a "horror show of tax rises with no end in sight", as the government deals with the costs of coronavirus.


He urged the 2019 Conservative intake to show trust to overcome the "short-term challenges" the party faces.

Some MPs have expressed fears U-turns are hurting the government's standing.

Mr Sunak accidentally revealed the wording of his statement while holding his notes outside 11 Downing Street.

The Conservative Party, which won an 80-seat majority at December's general election, has seen its opinion poll lead over Labour cut in recent weeks.

This has led to concerns among some MPs who won seats in traditional Labour heartlands in the Midlands and northern England, known previously as its "red wall".

An unnamed "red wall" Conservative told the Press Association MPs in these areas, and others in marginal seats, were "jittery" following a series of U-turns on subjects including exam results, the wearing of face coverings and school meal funding. They described the situation as a "megadisaster".

And Sir Geoffrey Clifton-Brown, treasurer of the 1922 Committee of Tory MPs, warned against "own goals", saying: "We may have a big majority but that still doesn't mean to say that we shouldn't be as competent as possible as a government."


A photographer picked up the words in Rishi Sunak's statement


It was reported at the weekend that substantial corporation tax rises and capital gains tax changes are being considered by the Treasury to deal with the enormous costs of coronavirus. But the government dismissed this as "speculation".

The wording of Mr Sunak's statement, read out during a meeting in Parliament on Wednesday with Tory MPs first elected in 2019, which the prime minister also attended, was revealed when a photographer noticed the chancellor holding a script sheet while leaving 11 Downing Street.

It read: "We will need to do some difficult things, but I promise you, if we trust one another we will be able to overcome the short-term challenges."

Referring to the reports that there could be tax increases to pay for costs incurred during the pandemic, including the furlough scheme, it added: "Now this doesn't mean a horror show of tax rises with no end in sight."

It continued: "But it does mean treating the British people with respect, being honest with them about the challenges we face and showing them how we plan to correct our public finances and give our country the dynamic, low-tax economy we all want to see."


Analysis


By Leila Nathoo, political correspondent

With more MPs back at Westminster, the prime minister and his chancellor took the opportunity to reassure restless Tory backbenchers about the government's strategy.

How to pay for the huge package of interventions to deal with the pandemic and its effects is at the forefront of Rishi Sunak's mind ahead of the Budget later this autumn.

Borrowing has ballooned and the prime minister has already promised there will be no return to austerity.

But there is nervousness among Tory MPs about rumours of tax rises and about the government's decision-making and messaging more broadly.

Mr Sunak told his Conservative colleagues that ministers needed to show people the plan for correcting public finances. He faces difficult choices while devising it.

Government sources denied the revelation of the chancellor's words in this way was "embarrassing", adding that they would have become a matter of public record anyway.

Discussing the coronavirus crisis, Boris Johnson told the MPs: "I know it's been tough. I've got to warn you, it's about to get tougher. The waters are about to get choppier. But we are going to deal with it."

The prime minister later addressed a meeting of all backbench Conservative MPs, with the 1922 Committee getting together for the first time since Parliament's summer recess.

One MP present said he had been "full of beans", while a minister added that both the day's meetings had been about "calming the troops".

Newsletter

Related Articles

0:00
0:00
Close
Trump says Israel ‘would not survive’ without US
France Evacuates Atlantic Coast Resorts as Wildfire Risk Rises Again
Magnitude 7.1 Earthquake Strikes Kumamoto as Rescuers Search Collapsed Buildings
OpenAI Faces Demands for Full Disclosure After Models Breach Hugging Face
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
Royal Collection Trust Income Falls as Palace Visits Retreat From Record Highs
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Ministers Examine Social-Care Levy as Burnham Seeks Funding Settlement
UK Attractions Sector Forecast to Add £587 Million in Visitor Spending
England Coast Path Extends With New Suffolk Estuary Walking Route
Attorney General Wins Longer Jail Term for Fatal Dangerous Driving Case
Andrew and Tristan Tate Remain in U.S. Custody Pending UK Extradition
Royal Fleet Auxiliary Workers Secure Above-Inflation Pay Deal
Prime Minister Seeks Cross-Party Agreement on Social Care Reform
Court Upholds Competition Ruling Against Drugmakers Over Hydrocortisone Prices
UK Unveils Major Technical Education Reform for Secondary Schools
UK Judge Rebukes Home Office Over AI-Generated Errors in Asylum Case
UK and Ukraine Agree to Share Electronic Warfare Technology
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Badenoch Offers Tory Votes to Keep Serious Offenders in Prison
Why Americans Queue for $15 Ice Cream and a $100 Caviar Pint
Another AI Genius Left the United States — and Silicon Valley Is Starting to Worry
Shein Reports $99mn Loss as Trade Barriers Test Low-Cost Model
CXMT Gains 466% in China’s Biggest IPO Since 2010
Amazon Seeks Approval for 5,105-Satellite Mobile Network
Burnham Puts School-to-Work Reform at Centre of Welfare Strategy
Johnson & Johnson Agrees to $5.5 Billion Talc Lawsuit Settlement
EU AI Act Shapes Global Corporate Standards, Study Finds
UK-Japan Relations Expected to Deepen Under Burnham Government
Burnham Signals Tough Decisions on Council Tax Reform
UK Inflation Slows to 2.6% in June
Bank of England Holds Interest Rates at 3.75%
Prime Minister Burnham Opens Talks With Business Leaders on Economic Growth
Government Launches 'Number Ten North' to Drive UK Devolution
Labour Regains Poll Lead After Burnham's First Weeks in Office
Prime Minister Burnham Rules Out Early UK General Election Before 2029
Burnham Rules Out Replacing Council Tax and Stamp Duty
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
The Burnham government is seeking to establish its credibility through ambitious social care reform while maintaining fiscal discipline and public confidence in the National Health Service. Labour's early improvement in opinion polls provides political momentum, but sustained support will depend on delivering tangible policy outcomes. Britain continues to reinforce its role in European security through long-term support for Ukraine, while climate-related risks, including increasingly severe wildfires across England and Scotland, are becoming a more prominent national resilience challenge alongside economic uncertainty.
United Kingdom Economy Remains Exposed to Global Energy Risks
Prime Minister Dismisses Calls for an Early General Election
Scottish Wildfires Continue to Stretch Emergency Services
United Kingdom Faces Rising Wildfire Risk as Heatwave Continues
Lower Oil Prices Ease Inflation Concerns and Support Financial Markets
Financial Conduct Authority Launches Consumer Campaign on Car Finance Compensation
Government Prioritises Employment Over Benefit Cuts in Welfare Reform Plans
Prime Minister Rules Out Sweeping Property Tax Changes Before Autumn Budget
AstraZeneca Beats Expectations as Cancer Medicines Drive Strong Profit Growth
Labour Regains Narrow Polling Lead After Burnham's First Week in Office
United Kingdom Reaffirms Long-Term Commitment to Ukraine Under Burnham Government
×