Mr Sunak is widely expected to hike corporation tax to 25 percent and resist increases to income tax, VAT and National Insurance.<\/p>\n Former Tory leader William Hague has reluctantly told the Chancellor now is the time for business and personal taxes to rise.<\/p>\n Lord Hague was succeeded by Mr Sunak in his Richmond, Yorks, seat when he stepped down as an MP in 2015.<\/p>\n He argued the only way to avoid tax increases would be to create smaller state, cut spending and reduce borrowing.<\/p>\n<\/p>\n Lord Hague insisted none of these would be possible in the current economic circumstances and branded them “dangerous illusions”.<\/p>\n Writing in the Daily Telegraph, Lord Hague said: “It pains me to say, after spending much of my life arguing for lower taxes, that we have reached the point where at least some business and personal taxes have to go up.<\/p>\n “To maintain the opposite viewpoint, you have to believe in one or all of the following three arguments.<\/p>\n “That we need a smaller state, and it is spending that should be cut as soon as possible after the crisis; that higher tax rates generally produce less revenue anyway; or that we can go on borrowing at very low interests for so long that all tax increases can safely be postponed.<\/p>\n<\/p>\n <\/strong><\/p>\n “All three of these arguments are now dangerous illusions.”<\/p>\n Lord Hague argued the Treasury cannot carry on spending, despite low interest rates, as the threat of inflation could further increase debt.<\/p>\n He added: “It is dangerous because inflation can easily return, particularly when pent-up demand for goods and services follows release from lockdown.<\/p>\n “And it is particularly dangerous in Britain because so much of our debt is index-linked – about a quarter of it, compared with an average of 3 to 8 percent across major developed nations.”<\/p>\n <\/strong><\/p>\n <\/strong><\/p>\n Mr Sunak is widely expected to increase Treasury funds by increasing corporation tax from 19 percent to 25 percent.<\/p>\n His statement will focus on protecting jobs and helping business most affected by the coronavirus lockdown.<\/p>\n A further £300million is expected to be pumped into the £1.57billion Culture Recovery Fund.<\/p>\n An additional £408million is set for museums, theatres and galleries in England, which been closed for most of the last 12 months.<\/p>\n A further £77million is set to be given to the devolved administrations in Scotland, Wales and Northern Ireland to provide their culture groups with similar backing.<\/p>\n <\/strong><\/p>\n DON’T MISS<\/strong><\/p>\n Rejoiners blasted for mass anti-Brexit rally: ‘Train has left!’<\/span><\/span> [INSIGHT]<\/strong>![](\"https:\/\/cdn.images.express.co.uk\/img\/dynamic\/22\/590x\/Rishi-Sunak-1404419.jpg?r=1614678896648\")
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Philip not popular enough to drop Meghan and Harry’s Oprah interview<\/span><\/span> [VIDEO]<\/strong>
Carol Kirkwood warns UK of heavy thundery showers as temperatures drop<\/span><\/span> [FORECAST]<\/strong><\/p>\n![](\"https:\/\/cdn.images.express.co.uk\/img\/dynamic\/22\/590x\/secondary\/lockdown-2930880.jpg?r=1614678897037\")
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