RISHI Sunak is facing fresh Tory civil war this week – Liz Truss leads a revolt on tax.
It is another headache for the PM who is still reeling from Boris Johnson’s explosive resignation and blistering attack over his honours list.
Former PM Liz Truss
Mr Sunak wants Britain to pass a new law which will state that Corporation Tax – a levy on business profits – can never be cut below 15 per cent.
It is part of a global deal brokered by the OECD and would be enforced by the end of the year.
But Ms Truss and former Home Sec Priti Patel have teamed up to try to stop the plan by tabling an amendment to the Bill.
Over two dozen Tories have signed up to the rebellion.
Ms Truss warned: “This deal would lock us into high taxes, high spending and low growth.
“We need the freedom to lower our tax rates to attract businesses and jobs to Britain.”
Ms Patel said: “Britain should be a beacon for free trade, able to keep taxes down to attract investment, economic growth and job creation.
“But having left the EU, the Government is about to surrender to the OECD control over our corporation tax rates.”
But the Treasury said the plan will force big multinationals to pay their fair share by nobbling their ability to dodge taxes.
A spokesman added: “The UK will retain the sovereignty to set our corporation tax rate – which remains the lowest in the G7.”
Mr Sunak has already raised corporation tax to 25 per cent.
Meanwhile, Rishi faces more Tory bloodletting tomorrow [MON] as MPs debate the partygate report banishing Bojo from Westminster.
While Boris has told his allies not to force a vote on the controversial privileges committee report, many of his MP pals still plan to attack it.
One said: “I am going to unleash the hounds of war”.
Senior Tory Jacob Rees-Mogg slammed the committee for threatening MPs like him who dared to criticise them.
He said they are behaving like “judge, jury and executioner” and must be reminded that Brits cherish free speech.
