Members of the Free Enterprise Group of Conservatives issued their demands as the Chancellor prepares to deliver his Budget in just over two weeks’ time.
Kwasi Kwarteng, the MP for Spelthorne, said Mr Osborne must take “big bold steps” to signal that Britain is serious about cutting the deficit and encouraging businesses to grow.
At a meeting hosted by the Institute of Economic Affairs in Westminster, he said it was “mind boggling” that the government was still spending £120 billion more than it received in taxes every year.
“We are not in a fit state to be spending money in this way,” he said. “We have got to address this and if we don’t what will happen is that we will have another government which will probably not address it and we will end up being a basket case.
“This is a big, big problem. Unless we actually can man up and deal with it, we have big problems ahead of us.”