Brutal Budget wealth tax raid dropped by Labour over fears it will drive the rich abroad and tank the economy

6 comments 6 Next THE Chancellor has ruled out hiking capital gains tax at the Budget amid concerns it could hurt Britain’s economic growth. John Healey has rejected calls to hike the wealth tax when he presents his Budget to the House of Commons next Wednesday. Chancellor John Healey has ruled out an increase to capital gains tax in his Budget next week Credit: PA Capital Gains Tax is levied on profits made from selling off assets like a house or shares Credit: Getty Advertisement Several Labour party figures have called for a rise in the tax, which applies to the profit made from selling off assets like a house, shares, or expensive antiques or jewellery. Cabinet ministers Wes Streeting and Louise Haigh both spoke of raising capital gains tax (CGT) over the summer before Andy Burnham became Prime Minister. Sign up for the Money newsletter Thank you! Email address Please provide a valid email. Your info will be used in accordance with our Privacy Policy You'll now receive top stories, breaking news, and more, straight to your email. But Mr Healey has now ruled out the move after warnings it could end up costing the Government money if wealthy people leave the country or defer selling off assets, according to the Times. CGT is currently levied at 18% on assets and property gains for basic-rate taxpayers, and 24% for those on the higher rate. Read more in money JOB LOT Jobs vacancies fall to 5-year low as firms blame Labour's tax raids & min wage hike BILL BUSTERS How to legally slash 4 hefty tax bills and save £1,000s Lord O’Neill of Gately, who has advised Burnham, told the newspaper that “raising capital gains tax would send very much the wrong message to business”. Rob Morgan, chief investment analyst at Charles Stanley Direct, said ruling out a capital gains tax rise “will provide some reassurance to business owners and investors” ahead of the Budget. He argues tax stability better supports investment and revenues, as higher taxes encourage delayed asset sales or prompt wealthy individuals to move abroad. The biggest announcement set to be made by the Chancellor next week is a tax raid on banks, which is expected to fund cost-of-living support for households and businesses. Advertisement Most read in Money DON'T BANK ON IT Revolut app goes down as customers have 'cards declined at the till' APPRENTICE AXE The 10 degree apprenticeships you can apply for NOW CHEAP AS CHIPS I tried 50 cheapest supermarket foods - the brilliant bargains I'd buy again JOBS ARMY Fashion firm launches Saturday job hiring spree with flex hours and 50% discount It also emerged this week that the Chancellor is plotting a tax raid on Britain’s family businesses , which could see their bills double. Healey has eased fears of hitting households and businesses with major tax rises on October 28, and has instead said he wants to implement a “steady as she goes” Budget. Get FREE tax guidance about inheritance, property and capital gains worth £250 * If you click on this link we will earn affiliate revenue Are you sick of handing over your hard-earned cash to the taxman? You could slash your tax bill legitimately with the right planning, from inheritance tax on your home to savings and pensions. Award-winning financial advice firm Kellands Chartered Financial Planners are offering Sun Money readers a free one-hour consultation with their experts worth £250. Claim your free session today Kellands (Hale) Limited is authorised and regulated by the Financial Conduct Authority. FCA Firm Reference No: 193498 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. However, Kemi Badenoch fears he will inflict far more damage than his predecessor Rachel Reeves, who introduced huge tax grabs such as last year’s £25billion National Insurance raid. In a speech today, she will warn the Government to slash its spending plans as borrowing costs and spending are spiralling out of control. Advertisement She will say: “John Healey is not Rachel Reeves . “Many people see that as an improvement. How could it be worse than £70billion in new tax rises across two budgets? “However, I’m worried he will deliver a Budget that does more damage to our country than either of her budgets did.” RECOMMENDED STORIES Pre-Budget polling by Ipsos has meanwhile revealed that the majority of the public have a mixed opinion of the Chancellor , as 67% of them believe he is doing neither a good nor bad job. The survey of 1,077 Britons carried out between October 9 and 12 also found that 65% of the public is expecting some form of tax rise at the Budget. Advertisement 6 comments 6