UK's Healey Rejects Capital Gains Tax Rise Before First Budget, Citing Investor Flight Risk
Updated
Updated · bbc.co.uk · Oct 20
UK's Healey Rejects Capital Gains Tax Rise Before First Budget, Citing Investor Flight Risk
3 articles · Updated · bbc.co.uk · Oct 20
Summary
John Healey said next week’s first Budget will not raise Capital Gains Tax, rejecting pressure from some Labour MPs to move the levy closer to income-tax rates.
Investor flight and weaker receipts drove the decision, with warnings that wealthy taxpayers could leave the UK or delay asset sales, ultimately costing the government money.
Healey has framed the stance as part of a wider wealth-creation agenda, arguing policy should support confidence, investment and profit rather than unsettle business.
The move cuts against earlier calls from senior Labour figures including Louise Haigh and Wes Streeting, while former adviser Jim O’Neill had warned a CGT increase would send the wrong message to business.
The tax decision lands just before the Budget and ahead of a Tory attack on the government’s broader fiscal plans, with Kemi Badenoch expected to press for lower borrowing and spending.