George Osborne’s job on the line as 65 Tory MPs tear into post-Brexit ‘punishment budget’
Chancellor's pals and seven ex-Cabinet ministers have joined the rebellion
GEORGE Osborne’s future as Chancellor tonight hangs in the balance after a fifth of all Tory MPs laid down an extraordinary ultimatum to ditch his controversial “Brexit Budget” plan.
In an unprecedented revolt, the 65 livid pro-Leave backbenchers threatened to oust him if he presses ahead with £30bn of tax rises and spending cuts.
The eye-watering fresh squeeze will be necessary to fill a black hole in state coffers brought on economic turmoil if we leave the EU, Mr Osborne claimed.
Insisting he was only being honest with people, the Chancellor said: “Rather than finding out the consequences for the nation’s budget after we quit the EU, the public should know what they are before they take that choice - so they can avoid these hard consequences altogether”.
But the move triggered uproar, and plunged Conservative MPs into their worst bout of infighting in the referendum campaign so far.
Furiously branding it “a punishment budget” and “Project Fear in hyperspace”, the 65 MPs – including seven former Cabinet ministers – vowed to vote it down in the Commons.
And issuing a mass joint statement, they labelled the Chancellor’s position “untenable” if he tried to carry it out.
Backbench rebel Tory MP Nadine Dorries went even further to call on Mr Osborne to “resign right now” if he believes the emergency move could ever be a good idea.
In another blistering attack on the Treasury supremo, former Tory leader Iain Duncan Smith also accused him of “talking the economy down deliberately” in the hope of triggering “panic the markets”.
Ex-Cabinet minister IDS accused Mr Osborne of being “more irresponsible than I’ve seen from any Chancellor”.
Even some of Mr Osborne’s Remain campaign allies privately branded the Brexit Budget warning a mistake that may end up finishing his career even in Remain wins.
One minister told The Sun: “George has gone too far this time, and its because he knows his job is now on the line.
“But this is a wound that will not heal for some colleagues.”
Other Tory MPs said Mr Osborne had blown any remaining chance of succeeding David Cameron as party leader with the tactic.
But Mr Osborne was defiant about suggestions his decision to unveil the Brexit Budget could cost him his job.
During a question and answer session at the Hitachi train depot in Ashford, he said: “It’s not about one politician, it’s not about one political career.
“This is about the future of our country, about who we are as a country.
“What’s the point of getting involved in public life if you’re not prepared to fight for the things you think are really important to our country and its future, its standing in the world and for jobs and prosperity?”
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He also hit out at Tory MPs suggesting they would refuse to vote for tax and cut measures, saying: “There is only one thing worse than not passing a budget like that – and that’s not passing a budget to deal with that situation and sending the economy into a tailspin.”
Making a passionate plea for remain, he added: “With all my heart, I will be fighting every hour until next Thursday to persuade people that we’re stronger, safer and better off by voting to stay in a reformed EU.”
Brexit boss Michael Gove even joined in the hounding tonight, despite being one of Mr Osborne’s closest friends.
The Justice Secretary said: “There is no need for an emergency Budget. I think it’s a shame the remain camp are talking this country down”.
Mr Osborne unveiled the grim blueprint alongside his Labour Treasury predecessor Alistair Darling in a bid to present a united front.
His proposed tax hikes would see 2p more onto the 20p basic rate of income tax, 3p onto the 40p higher rate of income tax, 5p on the rate of inheritance tax, and a 5% jump in fuel and alcohol duties.
The proposed cuts laid out by Mr Osborne include £2bn from the pensions bill, £2.5bn from NHS, £1.2bn from defence and £1.15bn from schools.
Critics pointed out the Brexit Budget would mean breaking as many as seven Tory manifesto pledges made only 13 months ago at the general election.
But Downing Street confirmed yesterday that the Chancellor is still prepared to do just that, saying the only way to be sure the promises are delivered “is to vote to Remain”.
David Cameron was also publicly attacked over the Brexit Budget plan during PMQs from his own green benches - the last session before the EU referendum a week today.
Tory MP Christopher Chope told the Prime Minister it was “vindictive”.
Mr Osborne and Mr Darling were also attacked by leftwing economists, who also accused him of “scaremongering”.
Jonathan Portes, UK in a Changing Europe senior fellow, said: “It is entirely legitimate for them to argue that over the long run Brexit will reduce UK growth, with damaging consequences for tax and spending.
“But in the short run tax increases or spending cuts would be entirely the wrong response to a Brexit shock.
“Both know that full well, and it is misleading for them to claim otherwise.”
In a bid to offer a more positive reason to vote Remain, Mr Cameron last night promised a “huge oomph” for Britain if voters choose to stay in the EU.
He said there would be “a Remain dividend” in which jobs, investment and confidence would flood back into London and the country.