Healey to reject calls to raise capital gains tax in budget

John Healey says he will not raise the UK’s capital gains tax (CGT) in next week’s budget, despite pressure from Labour colleagues including Louise Haigh and Wes Streeting. Treasury sources say Healey is concerned that increasing CGT could cost the Exchequer if wealthy individuals delay asset sales or move them abroad. CGT applies to profits made when people sell assets that have risen in value, such as second homes or shares. With CGT off the table, Healey’s main revenue move is expected to focus on banks. He plans to tax UK bank profits in the budget on 28 October, with HSBC, NatWest, Barclays and Lloyds generating £200bn in pre-tax profits over five years. The decision comes as borrowing costs rise and analysts warn Rachel Reeves’ fiscal cushion may be cut sharply.