Chancellor Healey rules out capital gains tax rise; expected to increase bank surcharge in Budget

Unbiased summary

Chancellor John Healey will deliver his first Budget next week. He has ruled out raising capital gains tax rates, citing concerns about economic growth and warnings that wealthy individuals might leave the country or defer asset sales. The Budget is expected to include an increase in the bank corporation tax surcharge to fund cost-of-living support. Other potential revenue-raising measures, such as unfreezing income tax thresholds, are under consideration. The Prime Minister has committed to not raising the headline rates of income tax, VAT, or national insurance. Former Bank of England chief economist Andy Haldane has warned that the Budget will be 'for the backbenchers, not business or bond markets,' predicting further borrowing and tax rises. Business groups, including the CBI, have cautioned against increasing bank taxes. Conservative leader Kemi Badenoch has called for spending cuts and reduced borrowing.

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Coverage by outlet

The Independent centre-left

Angle Frames the Budget as a progressive opportunity to raise revenue from higher earners and outlines options without strongly advocating.

Bias Emphasises potential tax rises on property, bank profits, and inheritance tax, and highlights the government's focus on devolution and progressive growth. Downplays business concerns about bank tax increases and does not critically examine the impact of tax rises on investment. The coverage stays largely factual but leans towards a more sympathetic view of the government's fiscal options.

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John Healey rejects calls to raise capital gains tax in Budget

City AM centre-right

Angle Strongly opposes bank tax increases and capital gains tax rises, arguing they would harm investment and growth; promotes business-friendly policies.

Bias Emphasises warnings from business leaders and economists that higher taxes on banks and capital gains would backfire, causing an exodus of wealth and reduced lending. Downplays the government's need to fund cost-of-living support and the case for banks contributing more. Omits any supportive voices for the tax rises and repeatedly frames the Budget as 'damaging' to business.

Budget 2026: If Healey really thinks banks are a jewel in the crown why is he raising taxes?

Investors cheer end of ‘damaging’ capital gains tax Budget speculation

Andy Haldane: This will be ‘a Budget for the backbenchers, not business’

The Sun right

Angle Criticises the Budget as being driven by Labour backbenchers, warning of tax rises and borrowing that will harm growth.

Bias Emphasises Andy Haldane's warning that the Budget will be 'for the backbenchers' and not for business or bond markets. Downplays the government's stated priorities and the rationale for tax increases. Focuses on potential negative consequences and frames the Budget as a political giveaway rather than a necessary fiscal event.

Andy Burnham’s ally warns Govt against ‘Budget for the backbenchers’ by raising taxes on business and more borrowing

Daily Mail right

Angle Opposes bank tax increases as an 'own goal' and portrays the Budget as a threat to business and growth, while highlighting warnings from business groups and economists.

Bias Emphasises CBI's warning that a bank tax raid would hurt competitiveness and Haldane's criticism that the Budget is for backbenchers. Downplays the government's need to raise revenue for cost-of-living support and omits any arguments in favour of bank taxes. Uses emotive language like 'own goal' and 'fears grow' to frame the Budget negatively.

Budget tax raid on banks would be an 'own goal' for the UK economy, CBI warns Healey

Expect a Budget for backbenchers, not business or bond markets, Burnham's old aide warns