Politics news: John Healey risks Labour civil war as Chancellor forced to rule out Capital Gains Tax hike amid fears of investor exodus

Live John Healey risks Labour civil war as Chancellor forced to rule out capital gains tax hike amid fears of investor exodus Stay up-to-date with all the latest political coverage from GB News below John Healey has been forced to rule out a hike in capital gains tax (CGT) in his first Budget as Chancellor, GB News understands. The decision risks the ire of Cabinet ministers Wes Streeting and Louise Haigh, who both previously called for a rise in the tax before Andy Burnham entered No10 in July. But Mr Healey has ruled out the move after warnings that it could spark an investor exodus and hamper economic growth if wealthy people leave the country or defer selling off assets. CGT applies to profits from selling assets like a house or shares. 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". The biggest "revenue raiser" in the Budget is set to be Mr Healey's raid on banks - but experts have warned the move could cost the British economy nearly £20billion. The Chancellor has acknowledged that Britain finds itself in a "tough" position ahead of the Budget, and is reported to be downplaying the prospect of major revenue-raising measures in his October 28 statement. Conservative leader Kemi Badenoch is meanwhile due to warn the Government to slash its spending plans, and reduce its borrowing at the Budget. In a speech on Tuesday, she will urge Mr Burnham and his Chancellor to "live within our means" and point to the Tories' £ 70 billion spending-cut package, including cuts to welfare and the civil service headcount, as a place to start. 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." FOLLOW BELOW FOR LIVE UPDATES THROUGHOUT THE DAY… 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 Follow for the LATEST UPDATES throughout the day... Andrew Griffith has urged John Healey to stop 'maxing out the nation's credit card' ahead of the Budget Andrew Griffith urges John Healey to 'reverse Rachel Reeves damage' ahead of Budget Andrew Griffith has urged the Chancellor to "reversing some of Rachel Reeves's damage" ahead of the upcoming Labour Budget. Speaking to GB News, the Shadow Chancellor accused John Healey of "maxing out the nation's credit card". He said: "We can't have a business as usual, do nothing, kick the can down the road Budget. We need real action on defence. "We need the Chancellor to stop maxing out the nation's credit card, building up the deficit, charging everybody more interest in their future, and action on that youth jobs emergency." Share Angela Rayner responds to call from Nottingham attack families to end benefits for criminals detained in hospital Angela Rayner has responded to the families of the Nottingham attack victims after calling to end benefits for criminals detained in hospital. Speaking to the BBC, the Housing Secretary said there were "far too many instances recently" where people feel that the criminal justice system "has not been on the side of those that needed the protection". She said: "That’s something obviously for the Chancellor and the Secretary of State, but I am aware that the Secretary of State has met with the families regarding this and was quite frankly astonished that the situation was as it was and that these people were receiving benefits, and that’s why the Secretary of State has taken this action, and I welcome it. "I pay tribute to the families who have campaigned on this matter." Share Downing Street hits back at Pete Hegseth after 'diminishing role' of Britain in Afghanistan Andy Burnham has hit back at Pete Hegseth after "diminishing" the role of the UK armed forces in the Afghanistan war. Donald Trump's Secretary of War has been criticised by Downing Street after his fresh attack on Nato allies. Speaking to US army cadets about his time as a captain in Afghanistan, Mr Hegseth said: "It was a beautiful thing to see, 50 different countries contributing to the Nato alliance and the mission there. "Except there were maybe five that contributed, it was actually closer to one or two that by the end were actually involved in kinetic operations." READ THE FULL STORY HERE. Share Kemi Badenoch has warned Chancellor John Healey to 'stop borrowing so much' ahead of the Budget Kemi Badenoch issues stark warning to John Healey ahead of Budget Conservative Party leader Kemi Badenoch has warned John Healey to "stop borrowing so much" to fund the public sector, ahead of next week's Budget. Delivering a keynote speech in London later today, the Tory leader is set to urge Prime Minister Andy Burhnham to "live within our means". She will also accuse the Government of "taking out loans to pay the interest on our loans". The Chancellor has ruled out calls to increase capital gains tax in his first Budget, amid fears it would limit economic growth and hinder investment. Share UK wage growth at weakest level in six years, new figures show UK wage growth has plummeted to its weakest level in six years, according to new Office for National Statistics (ONS) data. In the three months to August, total pay growth fell from 3.9 per cent in the three months to July to 3.7 per cent. The slump comes as the rate of UK unemployment fell to 4.7 per cent over the same period. David Freeman, Head of Labour Market and Households Division at the ONS said: "Regular wage growth remained relatively stable though total pay - including bonuses- has eased to its lowest level in nearly six years." Share Unemployment falls to 4.7% ahead of Budget Britain's jobs market was laid bare today as new figures showed unemployment fell while wages continued to rise faster than inflation. The unemployment rate dropped to 4.7 per cent in the three months to August, while regular pay grew by 3.7 per cent, according to the Office for National Statistics (ONS). After Consumer Prices Index inflation was taken into account, regular earnings were 0.8 per cent higher. The employment rate among people aged between 16 and 64 rose to 75.3 per cent. The economic inactivity rate, covering those who are neither working nor looking for a job, fell slightly to 20.9 per cent. READ THE FULL STORY HERE. Share Serious criminals detained in hospital to no longer receive benefits Killers and sex offenders who are detained in hospital will no longer receive benefits under new proposals called for by victims' families. The Government confirmed the move to end so-called "double provision" which enables offenders to claim hundreds of pounds a month for living costs while receiving NHS psychiatric treatment. Proposals set to be laid in Parliament on Tuesday would close the loophole and prevent serious criminals receiving up to £800 a month in universal credit over several years. This would save an estimated tens of millions of pounds annually. Work and Pensions Secretary Pat McFadden said: "We said we'd act to tackle this gross unfairness and we’re delivering on that promise. "For too long these violent criminals have had their living costs paid by the taxpayer twice over, while their victims and families paid the price. "That ends today because victims and taxpayers deserve a system that is fair and supports only those who genuinely need it." 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