The plan is one of four options laid out by anti-Brexit campaign group Best for Britain in a new report. It is supported by arch-Remainer Dominic Grieve – a pro-EU Conservative -and contains advice by University of Cambridge law professor David Howarth. If Mrs May’s Brexit Withdrawal Agreement is not passed in Parliament before March 29, 2019, Britain will leave the EU without a deal.
But Remain-supporting MPs may try to pass amendments to budget legislation to make future annual taxation conditional on allowing a “People’s Vote”.
The report said: “It would work by removing the power to collect the annual taxes unless either a deal had been approved according to the terms of the existing legislation (namely passing a resolution and an implementation Act) or a referendum had been arranged.
“The effect of passing the amendment would be, if MPs vote down the deal, to afford the public a Final Say on the deal instead of defaulting to a no deal as the next option on the agenda.”
It added: “The Government’s other options would be: carry on trying to get the agreement through the House without the support of MPs who want the public to have a Final Say on the deal; concede to a public Final Say on the deal; or resign”
The report added that the government could try to “tough the situation out” but that markets “would not be impressed”.
Income tax and corporation tax are annual taxes with their authorisation expiring at the end of the tax year.
Former attorney general Mr Grieve said the Government is in an “impasse of its own making” and said MPs have a “duty” to examine all options to avoid a no deal.
He wrote: “A decision needs to be taken. Parliament is, however, deadlocked and appears incapable of passing any form of deal whatsoever.
“It is our responsibility as parliamentarians, therefore, to recognise the nature of the impasse and give the choice back to the people in order to avoid a cliff-edge Brexit.
“Discussing other ways forward is not an abandonment of our responsibility to the electorate.
“Nor is it an attempt to subvert democracy by a clique wanting to prevent Brexit. This is the business and work of Parliament.
“It is our duty to act in the national interest and we must fulfil it.”