Healey pushes back on Labour calls to increase capital gains tax ahead of Budget

Chancellor Rachel Healey used her Tuesday address to reject recent Labour calls for a higher capital gains tax, saying it would discourage business activity. Lord O’Neill of Gately, a former adviser to Prime Minister Mr Burnham, warned that raising the tax would send the wrong message to investors. The Budget’s main revenue measure is expected to be an increased levy on banks, intended to finance cost-of-living assistance for households and firms.

Healey also highlighted the Conservative Party’s £70 bn package of spending cuts, including reductions to welfare and civil-service staffing, as a fiscal starting point. An Ipsos poll of 1,077 adults conducted between October 9 and 12 found that 65 % anticipate a tax increase, while 67 % rate the Chancellor’s performance as neither good nor bad.