More than 100 moderate Conservative MPs called on Monday for the Chancellor to introduce a package of “growth-boosting” measures in the Autumn Statement that would drag the party back to the centre ground before the election.
The One Nation caucus of 106 centrist Tories, chaired by MP Damian Green, published a 10-point plan that appeared to be a riposte to the hardline rhetoric coming from sacked Home Secretary Suella Braverman and the rightwing “New Conservatives” bloc.
The plan includes proposals to allow first-time buyers to use 25 per cent of their pension savings tax free for a house deposit. And homes left empty by landlords would be subject to a land value tax.
It would also drastically simplify the tax system by replacing different taxes on earnings, dividends and benefits with a new tax levied at a harmonised rate. That would stop poorer people paying proportionately far more in income tax, the report said.
Together, the ideas would be “a winning electoral strategy for the Prime Minister to reclaim millions of undecided voters” heading into an election, the group argued.
Many centrist Tory MPs are said to believe their voices and ideas are being drowned out by those on the right who are louder but represent a minority in the party. Only around 12 MPs attended a New Conservatives meeting last week after Ms Braverman was fired by Rishi Sunak.
Former PM Liz Truss meanwhile has been trying to mobilise support for her own radical approach which spooked the markets so much last year. Last week she launched a "Growth Commission" budget report which entails slashing taxes, cutting workers' rights and tearing up environmental policies.
The One Nation group’s "Boosting Growth" report instead favours "practical measures to reach net zero". Co-author Stephen Hammond, the MP for Wimbledon, said: "Conservatives win elections when our polices represent the hopes and aspirations of our country.
"The British people want a fair taxation system, to be able to buy a home, and for their government to protect our green and pleasant land. These are practical and popular conservative ideas which will broaden opportunity for everyone in Britain.
“The One Nation Caucus is asking the Chancellor to engage with these issues for the Autumn Statement and beyond. These principles can help form a pragmatic and positive vision for the Prime Minister and provide a roadmap for a winning election strategy for our party," Mr Hammond said.
“Our voice should be heard in the party because our voice resonates with the voters. One Nation conservatism must be the leading light for our party, ensuring sensible, pragmatic politics leads our party. Without this, we risk falling into an unrecoverable position with most of the voters.”
Chancellor Jeremy Hunt is due to unveil his Autumn Statement on Wednesday. Ahead of it, Mr Sunak vowed in a speech on Monday to cut taxes “carefully and sustainably”, especially on businesses, after he succeeded in his pledge to halve inflation this year.
