For last two days, as the Leave campaign has taken the lead, the Remain side has shifted emphasis to the “positive case” for EU membership. David Cameron and George Osborne retreated to allow Gordon Brown and Labour to issue a five-point plan (would it be any other number?) for reform. But today “Project Fear” is back with a vengeance. For the first time in the campaign, Osborne and his predecessor Alistair Darling will share a platform to warn of an “emergency Brexit Budget” if the UK votes Leave.
Based on the IFS’s forecast of a £20-40bn black hole, the sepulchral pair will set out £30bn of “illustrative” austerity measures. On the tax side, they will warn of a 2p rise in the basic rate, a 3p rise in the higher rate, a 5p rise in inheritance tax and a 5 per cent rise in alcohol and petrol duties. On the spending side, they will warn a £2.5bn cut to the NHS, a £1.2bn cut to defence, a £1.15bn cut to education and a £2bn cut to pensions.
Content from our partners
