‘tampon tax’ row

announcement was dismissed by Eurosceptics as proving the “absurdity” of Britain’s position because the Prime Minister had to get approval from Brussels for a change that would have been agreed by Parliament.

They also warned that any solution that emerges would only be a proposal and could ultimately be vetoed by any of the 28 states. The Budget had been designed to minimise party tensions ahead of the EU referendum.

On Wednesday, Mr Osborne said that he would be giving the £12 million raised by the tampon tax to women’s charities.

However, Tories are demanding he go a step further by getting rid of the tax all together and are ready to vote for a Labour amend- ment proposing as much. Anne-Marie Trevelyan, Tory MP for Berwick upon Tweed, who backs Brexit, said: “The people we elect should be responsible for setting the taxes in this country – not unelected EU judges and bureaucrats.”

“It is a fundamental principle of democracy that there should be no taxation without representation, which is what we now have.”

John Redwood, the Eurosceptic former Welsh secretary, said changes to the rate of tax on insulation and other energy-saving products was “the VAT rise in the budget that did not get a mention”.

It is due to rise from 5 per cent to 20 per cent due to a ruling by the European Court of Justice.

He said: “I for one will be opposing this measure, as I do not wish to see energy conservation taxed in this way and object strongly to the erosion of our taxation powers by the European Court.”

‘The people we elect should be responsible for setting taxes’