The post you are reporting:
Courtesy of the Telegraph that warns of the middle classes being the new money tree.
Tory MPs have warned Philip Hammond that the Conservatives will pay a "heavy price" if he mounts a tax raid on middle-class families to plug a multi-billion pound black hole in the public finances.
Treasury officials met last week and reportedly discussed increasing tax on fuel, homes and income as part of a plan to find billions of pounds ahead of the Autumn budget.
But senior Conservative MPs have warned that Theresa May risks losing support from voters if tax hikes target those on middle-incomes, while a former minister said increasing fuel duty would hurt small businesses, prompting higher prices in the shops. A Treasury source said discussions are at the "blue sky thinking" stage but MPs are concerned that the Prime Minister has abandoned her promise, made in a speech on the steps of Downing Street, to protect those who are just about managing.
Nigel Evans of the 1922 committee said" We have to be incredibly careful to be as loyal to people who vote for us as as they are, there has to be huge caution when thinking about this issue. "People vote Tory because they want to see a reduction in their taxes, not an increase - and we said we would keep taxes as low as possible. "If we go down the path of caning people for the sake of it then we will have to pay a heavy price."
It comes amid reports that the Government is considering a tax on diesel drivers in a bid to reduce the number of harmful emissions from vehicles across the UK. At the meeting of officials last week the possibility of increasing fuel duty, delaying an increase in the personal allowance and a cut in corporation tax were said to have been discussed.
Treasury experts also raised the prospect of increasing council tax on large homes, which could see hikes of up to 10 per cent, as well as a cut in the higher-rate of pension tax relief. Jacob Rees Mogg, a Tory MP who has served on the Treasury select committee, added that the Government should be looking at cutting taxes instead of increasing them.
He said that ministers need to learn the lessons of cuts to corporation tax which were followed by a significant rise in revenues.
