Around 60 Conservative MPs have pledged to vote down their party’s own budget if Britain left the EU – as Tory tumoil over Europe deepens.

George Osborne last night warned that after Brexit he would have to raise the basic income tax by 2 per cent, raise the higher rate by 3 per cent, and inheritance tax by 5 per cent.

He also pledged £2.5bn cuts to the NHS budget, defence spending reductions of £1.2bn, and education cuts of £1.15bn.

The Chancellor said the budget, based off calculations by the Institute for Fiscal Studies about the impact of Brexit, was necessary to plug a “black hole” in the public finances that would open up.

Sky News however reports that 57 Conservative MPs have however signed a letter point-blank refusing to back the cuts – raising the prospect of the Government collapsing.

Dr Liam Fox, a eurosceptic, said Mr Osborne was “putting his own position in jeopardy” with the planned budget, while Steve Baker said he was “shocked” at the plans, which he said broke Tory manifesto pledges.

The threat to kill the Conservative budget could lead to an early general election because budgets are treated as so-called “confidence votes” in the competence of the administration.

With a narrow majority of around a dozen MPs, the Chancellor would almost certainly be unable to pass a budget that was not backed by his significant cadre of eurosceptic MPs.

Dr Liam Fox, Conservative MP for North Somerset, is among planned rebels (Getty Images) (Getty)

Mr Osborne however told BBC Radio 4’s Today programme this morning that the country simply would not be able to afford its current level of spending after Brexit.

“The point is the country does not have a plan if we quit the EU. We’d wake up in just over a week’s time with no economic plan for our country, with years of instability,” he told the programme.

The most scaremongering arguments for Brexit Show all 7 1 /7 The most scaremongering arguments for Brexit The most scaremongering arguments for Brexit 22 May 2015 In his regular column in The Express Nigel Farage utilised the concerns over Putin and the EU to deliver a tongue in cheek conclusion. “With friends like these, who needs enemies?” PA The most scaremongering arguments for Brexit 13 November 2015 UKIP MEP for Yorkshire and North Lincolnshire Mike Hookem, was one of several political figures who took no time to harness the toxic atmosphere just moments after Paris attacks to push an agenda. “Cameron says we’re safer in the EU. Well I’m in the centre of the EU and it doesn’t feel very safe.” Getty Images The most scaremongering arguments for Brexit 19 April 2016 In an article written for The Guardian, Michael Gove attempts to bolster his argument with a highly charged metaphor in which he likens UK remaining in the EU to a hostage situation. “We’re voting to be hostages locked in the back of the car and driven headlong towards deeper EU integration.” Rex The most scaremongering arguments for Brexit 26 April 2016 In a move that is hard to decipher, let alone understand, Mike Hookem stuck it to Obama re-tweeting a UKIP advertisement that utilises a quote from the film: ‘Love Actually’ to dishonour the US stance on the EU. “A friend who bullies us is no longer a friend” The most scaremongering arguments for Brexit 10 May 2016 During a speech in London former work and pensions secretary Ian Duncan Smith said that EU migration would cause an increasing divide between people who benefit from immigration and people who couldn’t not find work because of uncontrolled migration. “The European Union is a ‘force for social injustice’ which backs the ‘haves rather than the have-nots.” EPA The most scaremongering arguments for Brexit 15 May 2016 Cartoon character Boris Johnson made the news again over controversial comments that the EU had the same goal as Hitler in trying to create a political super state. “Napoleon, Hitler, various people tried this out, and it ends tragically.” “The EU is an attempt to do this by different methods.” PA The most scaremongering arguments for Brexit 16 May 2016 During a tour of the women’s clothing manufacturer David Nieper, Boris had ample time to cook up a new metaphor, arguably eclipsing Gove’s in which he compares the EU to ‘badly designed undergarments.’ “So I just say to all those who prophecy doom and gloom for the British Business, I say their pants are on fire. Let’s say knickers to the pessimists, knickers to all those who talk Britain down.” Getty Images

“You’d have to cut your cloth accordingly: the country would not be able to afford to size of the public services we have at the moment and we would have to increase taxes.”

He pointed to the fact the plan was also backed by former Labour chancellor Alastair Darling. Labour’s current leadership has however refused to back the policy.

“I doubt since 1957 you’ve had a situation where a Conservative and Labour chancellor both agree,” the Chancellor said.

“I’m pointing out that the kind of measures we’d have to take are ones that any chancellor would have to take.

“Let’s be clear – no Conservative wants to raise taxes, least of all me. But equally Conservatives understand that you cannot have chaos in your public finances. You would have to deal with the hole that would emerge in your public finances if you quit the EU.”

Former Labour chancellor Alistair Darling has backed the sharp cuts (Getty)

The Tory row over post-Brexit cuts comes as Labour argues over whether there should be new restrictions on freedom of movement within the EU.

Deputy leader Tom Watson yesterday said he backed new controls of immigrants from Europe, but leader Jeremy Corbyn last night rejected them.