Osborne Warns Of Tax Hikes In 'Brexit Budget'

George Osborne will team up with his Labour predecessor Alistair Darling to claim leaving the EU would trigger an emergency "Brexit budget" with £30bn worth of tax hikes and spending cuts.

As a new opinion poll suggests there is still everything to play for, the pair will join forces to say schools, hospitals and the armed forces will all see their funding slashed in the event of a victory for Leave.

A ComRes poll for The Sun suggests Remain's lead is down to just one point, 46% to 45% - when last month it was 11 points, 52% versus 41%.

But the poll also suggests four million voters - some 9% - still have not made up their minds with just eight days to go.

The attack on Leave by Mr Osborne and Mr Darling will be their second joint intervention during the referendum campaign and reflects the Tory high command's attempts to woo Labour voters.

In a move dismissed by opponents as yet another "Project Fear" panic measure, the Chancellor will claim that in order to plug a predicted £30bn "black hole" created by Brexit:

:: The basic rate of income tax would increase by 10%, climbing to 22p in the pound

:: The top rate would rise 3p to 43%

:: Inheritance tax would go up 5p to 45p in the pound

An emergency Budget would also include the NHS budget cut by £2.5bn, defence by £1.2bn, and education spending down by £1.15bn, according to Mr Osborne.

Based on forecasts by the Institute of Fiscal Studies, spending on pensions could also be cut by £2bn, the Home Office, transport, and local government by £5.8bn and alcohol and petrol duties could surge by 5% in order for the Treasury to deal with a year-long recession it expects to follow Brexit, Mr Osborne will claim.

"Quitting the EU would hit investment, hurt families and harm the British economy," he will say.

"As Chancellor, I would have a responsibility to try to restore stability to the public finances and that would mean an emergency budget where we would have to increase taxes and cut spending.

"Far from freeing up money to spend on public services as the Leave campaign would like you to believe, quitting the EU would mean less money. Billions less. It (Other OTC: ITGL - news) 's a lose-lose situation for British families and we shouldn't risk it."

Mr Darling, Chancellor during the economic crash eight years ago, will say: "I am even more worried now than I was in 2008.

"We know we'll have not just a short period of uncertainty - but years and years of it. Far from having more to spend on public services - the giant con trick at the heart of the Leave campaign - we'd have tens of billions of pounds less.

"As a former Chancellor, I have to tell you that would mean an emergency budget where we would have to increase taxes and cut spending. Why on earth would we inflict that on ourselves all over again?"

But the former Defence Secretary Liam Fox has warned that voters "will not forgive" the Chancellor if he "threatens to inflict a punishment Budget" on them for voting to leave the EU.

"It would damage the Chancellor's credibility and would be putting his own position in jeopardy," said Dr Fox.

"I think the British public would react adversely to such a threat based on the Chancellor being afraid they will vote the wrong way in his opinion."

Tory MP Steve Baker added: "I am shocked that the Chancellor is threatening to break so many key manifesto pledges on which all Conservative MPs were elected.

"I could not support these plans to cut the NHS and increase taxes on hardworking families.

"If we vote Leave, we will be able to take back control of the millions we send to the EU every week and we will be able to invest in our priorities like the NHS instead.

"The In campaign are panicking - but no one will believe these hysterical prophecies of doom anymore."

There was also criticism of Mr Darling from pro-Leave Labour MP John Mann, who said: "Alistair Darling is backing George Osborne's new austerity budget. Instead he should be joining us in campaigning to leave the EU to help remove the need for further Osborne-imposed austerity."

Labour's deputy leader Tom Watson will claim staying in the EU will lead to an extra one million jobs, because remaining linked to the EU's digital, energy, and tourism markets could see a surge in employment by 2030.

But the Leave campaign has returned to the attack on Turkey, seizing on a report in the Financial Times that its accession to the EU is being accelerated by David Cameron.

Vote Leave chief executive Matthew Elliott said: "This is the second time this week that the Government's plans to accelerate visa-free travel and EU membership for Turkey have been revealed.

"David Cameron said he wants to 'pave the road from Ankara' and the Brussels negotiations to make this happen are well under way."

The Financial Times reports: "Turkey's EU membership talks are set to be given a boost within a fortnight, after Britain abandoned its attempt to freeze the process of opening a new 'negotiating chapter' with Ankara until after its EU referendum."