Chancellor John Healey has ruled out raising capital gains tax in next week's budget, instead planning a tax raid on banks. Conservative leader Kemi Badenoch warns his budget could be worse than Rachel Reeves' if spending is not cut.
01Summary
- 01John Healey has decided not to raise capital gains tax in his first budget on 30 October, according to the Times.
- 02The budget's largest revenue raiser will be a tax on banks, used to fund targeted cost-of-living support.
- 03Healey will reduce the fiscal headroom from £23bn to around £15bn.
- 04Kemi Badenoch will argue in a speech that Healey's budget could be worse than Reeves' two budgets, which raised taxes by £40bn and £26bn.
- 05Badenoch says Healey should follow Tory plans to cut government spending by £70bn a year.
02Why it matters
This matters because the budget will affect household finances, particularly through bank tax changes and the absence of capital gains tax rises, while the political row over spending cuts could shape future fiscal policy.
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