We will see if Rishi Sunak has the courage to increase taxes like he should

Presented well, a fair tax system would appeal to the Conservatives’ new supporters, writes Andrew Grice

The chancellor, Rishi Sunak, has done well during a baptism of fire, but the tests will continue (PA)

Rishi Sunak’s announcement of £9bn of financial help for the self-employed was generous as well as unprecedented. Yet, in the long run, his most significant statement will be his clear indication that once the coronavirus crisis is over, the self-employed will have to shoulder more of the nation’s tax burden.

“If we all want to benefit equally from state support, we must all pay in equally in future,” the chancellor said. He is right. The number of self-employed has risen by more than 50 per cent to 5 million in the past 20 years. The tax system gives people an incentive to enjoy that status: the self-employed pay lower national insurance (9 per cent) than salaried employees (12 per cent), a difference that costs the Treasury £5.1bn a year.

Sunak will need that money – and a lot more – when the country has to, in his words, “right the ship” after the storm. He was right to prepare people for some turbulence, and kickstart a debate about how the coronavirus bills will be paid.