George Osborne's Brexit budget warning sees 57 Tory MPs revolt

Divisions within the Conservative party over Europe have again emerged this morning after 57 of the party's MPs signed a letter pledging to block George Osborne’s proposed emergency Brexit budget.

In one of his starkest warnings yet, the chancellor warned he would be forced to introduce £30bn of tax rises and spending cuts to fill the “black hole” created by quitting the EU.

However disgruntled backbenchers have refuted the claim, also suggesting Osborne's position as Chancellor would be “untenable” if he proceeds with his threat.

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Furious Tory MPs - including former Cabinet ministers Iain Duncan Smith and Owen Paterson - condemned the Chancellor for threatening to renege on Tory manifesto commitments on the public finances.

In a serious challenge to Mr Osborne’s authority, they said in a statement: '"It is absurd to say that if people vote to take back control from the EU that he would want to punish them in this way.

"We do not believe that he would find it possible to get support in Parliament for these proposals to cut the NHS, our police forces and our schools.

"If the Chancellor is serious then we cannot possibly allow this to go ahead. It would be unnecessary, wrong and a rejection of the platform on which we all stood.

"If he were to proceed with these proposals, the Chancellor's position would become untenable.

"This is a blatant attempt to talk down the market and the country. The Chancellor risks doing damage to the British economy in his bid to win this political campaign."

Among the proposed tax rises and cuts includes a warning the ring-fenced NHS budget could be “slashed” and spending on police, transport and local government could take a 5 per cent cut.

Increases in the bottom and top rate of income tax and a 5p increase in the inheritance tax rate have also been mooted by Mr Osborne in the event of an emergency budget.

Appearing alongside his Labour predecessor Alistair Darling later, Osborne will say: “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's a lose-lose situation for British families and we shouldn’t risk it."