Chancellor John Healey rules out capital gains tax rise ahead of Oct. 28 budget

Healey dismissed calls from Labour colleagues to raise CGT, warning it could drive high‑earners abroad ahead of the Oct. 28 budget.

By Felo News Desk · Published Tue, 20 Oct 2026 09:25:06 GMT

Chancellor John Healey has ruled out any increase to capital gains tax (CGT) in the Autumn Budget scheduled for 28 October, according to two reports from the Standard.

What happened

Healey rejected a proposal to raise CGT rates after senior Labour figures, including Cabinet ministers Wes Streeting and Louise Haigh, pressed for a hike over the summer. The chancellor’s decision was reported on 20 October, the day before the budget is due to be delivered.

What the reports add

The first Standard article notes that Healey’s rejection follows warnings that a higher CGT could deter investment and prompt wealthy individuals to relocate abroad, citing recent moves by billionaires David and Simon Reuben to Monaco and hedge‑fund manager Chris Rokos to Greece. The second article adds that Lord O’Neill of Gately told the Times a CGT rise would “send very much the wrong message to business”. Both pieces say the budget’s biggest revenue‑raising measure is expected to be an increase in the rate banks pay on their profits, intended to fund cost‑of‑living support.

What was said

Lord O’Neill of Gately told the Times, “raising capital gains tax would send very much the wrong message to business”. The Standard reports that Healey himself said the move could cost the government money if wealthy people leave the country or defer asset sales.

How it came about

Healey’s stance follows a series of tax‑policy debates in the run‑up to his first budget as chancellor. Earlier this month, Felo News reported that Conservatives urged him to keep taxes flat (Tories urge new chancellor John Healey to keep taxes flat), and that he had already abandoned a plan to widen the mansion tax (Chancellor John Healey abandons plan to widen mansion tax). The budget, set for 28 October, will also address pension reform and first‑home support (Chancellor John Healey to deliver Autumn Budget on Oct. 28).

Key facts

Chancellor John Healey ruled out raising capital gains tax in the upcoming budget (standard.co.uk)
The Autumn Budget is scheduled for 28 October 2026 (standard.co.uk)
Labour ministers Wes Streeting and Louise Haigh had advocated a CGT rise over the summer (standard.co.uk)
Lord O’Neill of Gately said a CGT increase would send the wrong message to business (standard.co.uk)
The budget’s biggest revenue measure is expected to be a higher bank profit levy (standard.co.uk)