THE President of Worcester's Conservative Association has fired an angry letter to George Osborne - criticising him over tax increases.

Andrew Grant has written to the Chancellor saying the economy could be damaged unless he pays heed to a grassroots Tory rebellion ahead of next week's Budget.

He has also told Mr Osborne he is jeopardising "the backbone of the Conservative Party" by levying too many taxes on "the middle classes".

From April controversial three per cent rises in stamp duty are kicking for second home owners and buy-to-let landlords in a big shake-up of the housing market.

The Chancellor was also intent on raiding pensions by abolishing higher rate tax relief next week, but has abandoned the proposal after serious concern within the party.

Mr Grant's letter, seen by this newspaper, calls the property taxes "counterproductive to those wishing to save to purchase their first home" and "very concerning".

The leading Tory, the city's most senior figurehead within the Worcester branch, also suggested the ditched pensions raid was anti-Conservative by discouraging savers.

He said: "The middle classes are the backbone of the Conservative Party and are those that have worked very hard to win the last election.

"The Conservative Party had been a party for lower taxation, which in turn increased the tax receipts because of the encouragement of business.

"In the case of increased stamp duty on buy to let's and second hand homes and the pension raid it all seems to be part of a tax on the middle classes."

The letter has been sent to all six Worcestershire MPs and Mr Osborne's office ahead of next Wednesday's Budget.

Away from politics Mr Grant runs Andrew Grant Estate Agents, and told your Worcester News he was concerned about the market slowing down.

"The average age of a first-time buyer is actually 37 years old now," he said.

"When the higher duty kicks in, rents will go up and that'll make it even harder for people to get on the ladder.

"I've told him exactly what I think about it."

Mr Osborne is believed to be unlikely to change the stamp duty rise but has shelved the planned pensions raid.

The Chancellor has spent months considering a major shake-up of the pension system, which costs the Government £50 billion a year.

The extra money could have allowed Mr Osborne to reduce the higher rate of income tax and clear the deficit.

Your Worcester News revealed on Saturday house prices have surged seven per cent across the city in just one year, taking the average to £208,347.