Full Breakdown
Labour Chancellor Rules Out Capital Gains Tax Rise Ahead of Autumn Budget
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Core Decision on Capital Gains Tax
Labour Chancellor John Healey has announced that the upcoming Autumn Budget will not introduce new capital gains tax (CGT) bands. The decision comes after pressure from senior party figures, including Louise Haigh, First Secretary of State, who had called for CGT rates to be aligned with income tax. Healey’s stance is framed as a move to keep the United Kingdom attractive to investors.
Background & Context
Healey was appointed to Number 11 Downing Street by Andy Burnham, the Labour Party leader, during the summer reshuffle. The prospect of a CGT increase had been linked to broader Labour plans to equalise tax treatment of investment income with earnings. Business groups such as Tech Nation have warned that higher CGT could drive capital and founder talent abroad, urging the government to consider relief for reinvestments in UK start-ups.
Official Statements & Responses
Andrew Griffith, the Conservative shadow chancellor, described Healey’s reversal as a “headlong retreat” that could damage economic confidence and jobs. He added that while individual U-turns are welcome, the Treasury must focus on curbing welfare spending. Lord Jim O’Neill, former adviser to Burnham, expressed disappointment at any potential increase, warning it would fuel speculation that wealthy individuals might relocate abroad.
Verbatim Quotes
- “The Conservatives are the only party that have set out a plan to do that.” — Lord Jim O'Neill
Healey is scheduled to deliver the full Autumn Budget on October 28.