Chancellor of the Exchequer John Healey has rejected calls from some Labour MPs to increase Capital Gains Tax (CGT) in his first Budget. Mr Healey's decision comes ahead of next week's Budget announcement.
Cabinet ministers Wes Streeting and Louise Haigh had previously voiced support for raising CGT before Andy Burnham became prime minister in July. Ms Haigh, a key ally of the prime minister, had suggested capital gains should be closer to income tax. Mr Streeting called for a "wealth tax that works" in May.
The move to rule out a CGT increase follows warnings that such a change could potentially cost the government money if wealthy individuals leave the country or delay selling assets, as reported by the Times newspaper. The Financial Times also reported that Mr Healey had already ruled out equalising the two tax rates. Lord Jim O'Neill, a former adviser to Prime Minister Burnham, suggested that raising CGT would send "the wrong message to business."