Rishi Sunak branded a ‘tax illusionist’ as claims unfold Business

It also emerged that many petrol stations franchised by the biggest oil companies failed to pass on the 5p reduction in fuel duty announced by the Chancellor on Wednesday evening.

BP, Shell, Esso and Texaco said they could not guarantee immediate price reductions because the majority of their forecourts are operated by franchisees.

Tory MPs have urged Mr Sunak to offer tax cuts or risk damaging the Tories’ reputation for fiscal prudence.

Former Tory leader Sir Iain Duncan Smith said: ‘People are still paying more tax even than he announced last year. It costs them a lot of money. He has tightened his finances too much and he has to think beyond what he is now.

A former minister said: “Frankly, I am not impressed. There was some margin there and he didn’t take advantage of it. Talking about a 1p tax cut in 2024 is almost insulting to people.

Former cabinet minister Esther McVey, founder of the Blue Collar Conservatives group, said: ‘Rishi is in an unenviable position as he tries to do the impossible with the limited resources the lockdowns have left him with, but the government must use the tools to eliminate them and reduce taxes more and faster.

Sir John Redwood, another former Cabinet minister, said: “Rishi Sunak needs to do more. I would like to see us move faster. We should cut taxes now to stimulate the economy – that’s how we will increase our income.

Another former Cabinet minister said: ‘The possible 1 pence cut in income tax ahead of the next election is an attempt to conceal the fact that we have the biggest ever increase in the tax burden of 33, 3% to 36% of GDP. It is enormous. My opinion is that Rishi is not a tax cut chancellor and people will see that. Unless he changes, his reputation as a tax cutter deteriorates from here.

Former minister Tim Loughton said the Chancellor had faced “exceptional circumstances”, but he warned the increased tax burden facing households was “completely damaging”. If it had been a budget, it wouldn’t have been a normal Conservative budget,” he said.

“We urgently need to reduce this tax burden for both businesses and individuals.”