Reported hike in corporation tax is ‘tough choice,’ select committee chair says

1 March 2021, 08:20

Mel Stride the chair of Parliament’s Treasury Select Committee has told LBC it tax hikes are “tough choices,” which sometimes have to be made.

Speaking to LBC’s Nick Ferrari ahead of Wednesday’s Budget the Conservative MP explained

Mr Stride said the Covid crisis had now reached the stage where “hopefully” the country would start to emerge “economically with some reasonable growth over the coming months.”

He told LBC he thought “the last thing we want the Chancellor to be doing now is jacking up taxed and dampening down the animal spirits in the economy.”

However, Mr Stride said Rishi Sunak would need to “signal that he’s serious about getting on top of the public finances in the more medium term.”

The conversation comes after news emerged that Chancellor Rishi Sunak could be set to hike corporation tax from 19% to 25%.

Warning there could be some tax rises in “the future,” the committee Chair said that was “not something that is focused on now.”

When Nick questioned the MP if it was a “possibility” that corporation tax could rise to 25% “within the lifetime of this Government,” the reply was that it could happen.

“I think it is,” Mr Stride said, adding he would support a “modest increase” in the tax.

“These are tough choices, nobody wants to do this,” Mr Stride warned.

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