Capital Gains Tax frontrunner for hike in Budget
- Posted on September 16, 2026
- By I Paper
- 2 Views
- 1 min read
In brief
The UK Government faces mounting pressure to secure additional fiscal revenue ahead of its October Budget. Capital Gains Tax emerges as the primary candidate for reform, according to senior Labour figures and economic analysts. With rising borrowing costs and geopolitical tensions eroding the Government's £24bn financial buffer, Chancellor John Healey must choose between tax increases or expenditure cuts to maintain compliance with strict fiscal constraints.
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Capital Gains Tax frontrunner for hike in Budget
Hiking Capital Gains Tax is the frontrunner when it comes to potential tax increases in next month’s Budget, Labour insiders and economists have told The i Paper. Andy Burnham and the Chancellor John Healey are mulling whether to raise taxes in their first Budget on 28 October. An increase in the UK’s borrowing costs and the economic fallout of the Iran war has slashed the £24bn “headroom” which the Government holds against its fiscal rules constraining borrowing. If Healey wants to rebuild the headroom, he will have to either increase taxes or cut spending. A source close to Downing Street […]
