The Times reported on Monday that Chancellor John Healey has decided not to
raise capital gains tax in his first budget on Oct. 28 and will prioritize
growth and business investment instead. After warnings that a CGT increase could
prompt wealthy residents to emigrate or defer asset disposals—ultimately
reducing receipts—Healey abandoned the measure. The new budget’s main
revenue-raising measure is expected to be a levy on banks, with proceeds
earmarked for a temporary, targeted cost-of-living support package. The Treasury
declined to comment. Healey faces pressure to raise billions of pounds to offset
higher government borrowing costs and to fund Prime Minister Andy Burnham’s
plans to boost defense spending and expand social care.
