Politics
Healey rules out capital gains tax rise in Budget
October 20, 2026 at 07:57 AM · Updated 21h ago
Coverage
4 reports · over 12 hours
BNBBC News
Labour will not have the courage to cut spending, says Badenoch
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TGThe Guardian
A modest increase in bank taxes is not the end of the world for lenders | Nils Pratley
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TGThe Guardian
Healey to reject calls to raise capital gains tax in budget
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BNBBC News
Chancellor rejects calls to raise Capital Gains Tax in Budget
(opens the publisher’s site)Chancellor John Healey has rejected calls to raise capital gains tax in next week's Budget, with a tax on banks' profits expected as his main revenue raiser.
- Healey has ruled out raising capital gains tax in the 28 October Budget, citing warnings it could cost the Treasury if the wealthy defer asset sales or leave the country.
- The chancellor is instead expected to tax banks' profits, after the UK's four largest lenders generated £200bn in pre-tax profits over five years.
- Cabinet ministers Louise Haigh and Wes Streeting had previously backed raising capital gains tax, with Streeting calling it a "wealth tax that works".
- Conservative leader Kemi Badenoch will urge the government to cut spending plans instead of raising taxes.
- The expected bank tax is an increase in the bank surcharge on corporation tax from 3% to 8%, raising around £2bn for the Treasury.
- Badenoch said Labour lacked the courage to cut spending and pledged to find £70bn of savings to reduce debt.
- Labour chair Bridget Phillipson dismissed the plan as 'reverse Robin Hood politics' favouring the wealthy.