John Healey risks Labour civil war as Chancellor warned Budget 'could do more damage' than Rachel Reeves

EXCLUSIVE Rhiannon Whyte's mother slams Labour for 'allowing illegals to come over' 1792500883.003 John Healey risks Labour civil war as Chancellor warned Budget 'could do more damage' than Rachel Reeves Wes Streeting and Louise Haigh have both put pressure on No11 to increase capital gains tax Sign up to the Politics Newsletter Email address Sign up I agree to receive updates and information about my account, the GB News Community, and related products and services from GB News. By signing up you agree to the Terms and Conditions and Privacy Policy and Community Rules. Thank you for signing up! See the latest from GB News here . Choose GB News on Google - add us as a preferred source Choose GB News Support GB News Champion free speech and independent journalism while unlocking exclusive benefits. Support us John Healey is at risk of igniting a Labour civil war after being forced to rule out a hike to capital gains tax. GB News understands the Chancellor will not increase the levy on taxable profit in his first Budget since entering No11. The decision puts Mr Healey at odds with Defence Secretary Wes Streeting and Deputy Prime Minister Louise Haigh. However, the Chancellor will also face grumblings from the Labour backbenchers after hundreds of MPs backed a resolution to increase the rate to 24 per cent in 2024. TRENDING Stories Videos Your Say Despite pressure to plug a growing financial black hole, Mr Healey also faced warnings that it could spark an investor exodus and hamper economic growth if wealthy people leave the country or defer selling off assets. Capital gains tax applies to profits from selling assets, including a house or shares. Labour introduced the levy at a flat rate of 30 per cent in 1965, with the Tories bringing the charge in line with income tax in 1988. Rachel Reeves increased the main rates for most assets from 10 per cent to 18 per cent for basic-rate taxpayers and from 20 per cent to 24 per cent for higher-rate taxpayers. John Healey risks Labour civil war as Chancellor forced to rule out Capital Gains Tax hike amid fears of investor exodus | PA Lord O'Neill of Gately, who has advised Mr Burnham and worked on the Northern Powerhouse project, told The Times: "Raising capital gains tax would send very much the wrong message to business." However, the Treasury is now expected to raise revenue by targeting Britain’s banking sector. Mr Healey is poised to impose a levy on lenders after the UK’s four largest banks generated bumper pre-tax profits. HSBC, NatWest, Barclays and Lloyds Banking Group have recorded £200billion in pre-tax profits over the past five years alone. LATEST DEVELOPMENTS Labour wants migration to get more votes despite risk of UK turning into France, says Kemi Badenoch Labour refuses to include Omagh bombing in Troubles Bill despite IRA attack leaving 29 dead Labour to push ahead with Chagos 'surrender deal' despite Andy Burnham's promise to Donald Trump Wes Streeting also pushed for an increase to the capital gains tax levy | POOL However, experts warn Mr Healey's lender levy risks costing the UK economy £20billion. Tory leader Kemi Badenoch claimed the Chancellor's proposed tax raid risks being worse than measures introduced by his predecessor, Rachel Reeves. Speaking at an event in Central London, Mrs Badenoch said: "John Healey is not Rachel Reeves, and many people see that as an improvement. "How could anyone do worse than £70billion in new tax rises across just two Budgets? Kemi Badenoch has declared that the UK's welfare bill must be cut to fund defence | POOL "However, I think that next week, John Healey will deliver a Budget that does just as much damage to our country as Rachel Reeves did. In fact, it could be even worse." She added: "We are being told next week’s Budget is going to be ‘nothing to see here’. "That’s Whitehall code for a Budget that tries to do as little as possible­... in the hope no one notices." Mr Healey confirmed Labour was looking to prioritise wealth creation without it being constantly subject to penalties. John Healey was warned the move could damage the economy | PA In a keynote speech last month, the Chancellor said: “I recognise that the cost of business – that’s energy bills, regulation burdens, planning constraints, labour costs – have grown since Covid. And I want to draw the line." He added: “I want to see this country as a country of wealth creation. I want our government decisions and policies to raise the levels of confidence and investment and profit in British business.” Mr Healey will deliver his first Budget as Chancellor on October 28. A Treasury spokesman said: "As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals." 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