Marcus Fysh, the Conservative MP for Yeovil, said: “The economy is facing substantial headwinds this year, including difficult cost pressures.
“Reducing the cost of employment would be preferable to going ahead with the NI rise and I would support other tax-cutting measures designed to help boost jobs and productivity. Tax receipts are best maximised by encouraging real private sector activity and growth.”
Craig Mackinlay, the Conservative MP for South Thanet, said that Mr Sunak should “most definitely not proceed with it. But politically and realistically it would be seen as a monumental U-turn, so I can’t see it happening”.
Philip Davies, the Tory MP for Shipley, added: “Scrapping VAT on energy bills would be a huge help to our hard-pressed constituents and also be a clear Brexit dividend given we wouldn’t have been able to do so in the EU. We also must start to source the cheapest energy.”
Other Conservative MPs thought to be privately supportive of Sir John include Sir Graham Brady, the chairman of the 1922 committee of backbench Tory MPs.
However, some Tories were more forgiving of the Government’s need to raise money through taxation. Kevin Holinrake, a member of the House of Commons Treasury select committee, said: “Given the parlous state of the public finances I really don’t think the Government has much room for manoeuvre on tax.
“The biggest hit to the cost of living would be inflation and the consequent interest rate increases, so I think the Treasury should focus its attention there.”
The TaxPayers’ Alliance campaign group has estimated that the tax burden – expressed as taxation as a percentage of GDP – is scheduled to reach a 73-year high by 2023/24.
Danielle Boxall, the alliance’s media campaign manager, said: “Taxpayers are crying out for politicians to relieve the pressures whittling away the money in their wallets. The Chancellor must do more to ease the burden on families and businesses to prove the Tories still care about cutting the cost of living for ordinary taxpayers.”
Treasury sources pointed to measures already taken to ease the cost of living crisis, including creating a £500 million winter household fund and cutting the Universal Credit taper rate, which was the equivalent of a £1,000 cut for two million families.
A government spokesman said: “We recognise people are facing pressures with the cost of living, which is why we’re taking £4.2 billion of decisive action to help.
“We’re providing extensive support to those on the lowest incomes, including putting an average of £1,000 more per year into the pockets of working families on Universal Credit, increasing the minimum wage, and helping with the cost of fuel bills.
“Our £500 million Household Support Fund is also giving more help to the most vulnerable with essential costs this winter, and councils have been given an extra £65 million to support low-income households with rent arrears.”
