Liz Truss allies on collision course with Rishi Sunak as they ‘gather strength’ demanding tax cuts in March Budget

RISHI Sunak is on a collision course with Liz Truss allies wanting tax cuts in the Budget.

The PM has been warned the backbench Conservative Growth Group is “gathering strength” — with “dozens” pushing for bold policies.

But they are set for disappointment as Chancellor Jeremy Hunt is drawing up a gloomy package with little giveaways.

Policies he has already sent to forecasters at the Office for Budget Responsibility in anticipation of the March 15 Budget are understood to include no plans to reduce taxes.

Yet former Cabinet Minister Sir John Redwood said yesterday that cuts are “crucial” to fixing the ailing economy.

He told Sky News: “Otherwise we are going to have a poor year for investment which will lead to a disappointing out-turn on growth.”

The top Tory added that the Growth Group is “gathering strength as we speak” and there are dozens of Tory MPs arguing for more positive measures.

Sir John singled out Corporation Tax, saying that hiking it from 19 per cent to 25 per cent in April will throttle investment.

Liz Truss intended to scrap the planned rise during her short-lived premiership.

Her allies are now regrouping for a fresh pre-Budget push.

A Treasury source said: “High inflation is the single biggest barrier to growth.

"Any extra borrowing to fund tax cuts will only fuel inflation.”