A CONSERVATIVE MP has criticised the chancellor’s planned tax rise on business profits – and said if people really backed the idea, they would have voted for Jeremy Corbyn.

Rishi Sunak announced corporation tax would rise from 19 per cent to 25 per cent from 2023.

The chancellor said the 19 per cent rate would remain for firms with profits of £50,000 or less. The new rates will be tapered so that only profits of £250,000 or more would attract the full tax.

But Christchurch MP Sir Christopher Chope said Britain’s tax burden in 2025-26 would be the highest in more than 50 years.

“Let us also not forget that the proposed increase from 19 pence in the pound to 25 pence in the pound is an increase of more than 30 per cent in corporation tax,” he said.

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Labour’s policy under Jeremy Corbyn’s leadership in 2019 was to increase corporation tax in stages to 26 per cent.

Sir Christopher told the Commons debate on the budget: “The fact that 65 out of every 100 people questioned like the increase in corporation tax illustrates the extent of the economic illiteracy that sadly abounds.

“If that is really what the public want, the right honourable member for Islington North (Mr Corbyn) would have won the general election with a landslide with his promise of an even larger corporation tax rate of 26 pence in the pound.”

He added: “The Office for Budget Responsibility believes that the consequence of the changes in corporation tax will be an increase in the cost of capital and reduced business investments, and that that will, in turn, lead to lower productivity and lower wages.”

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He argued that Ireland had been able to attract businesses such as Apple, Boston Scientific, Dell and Facebook because of its low corporation tax.

He added: “Why should taxpayers pick up the cost of accommodating, as the chancellor put it, the ’most cautious approach’ to restoring social and economic freedom? UKHospitality estimates that the costs of not reopening to hospitality on 1 April is £9billion, and that does not include such things as weddings and so on.”

In the same debate, South Dorset MP Richard Drax praised the chancellor for “a no-harm budget, aimed at steering us through treacherous waters”.

“It has been heartbreaking for me and, I am sure, all colleagues to hear from so many businesses of their dire circumstances. They are run by men and women who have worked hard and taken risks, often having to mortgage their homes, all to make a living for themselves, their families and, of course, their staff. It is this industrious activity that pays for the public sector, not least the NHS and our schools,” he said.

He added: “‘Levelling up’ is an expression frequently used by the government, and nowhere is that more needed or deserved than South Dorset. At or near the bottom of every source of funding for decades, it is our turn to be nurtured. I shall soon be presenting a business plan to the prime minister and Treasury drawn up by business leaders in my seat. To ensure that we attract businesses and investors, we need help to improve our infrastructure. Our over-reliance on tourism and hospitality does little to boost incomes and raise living standards.”