Labour capital gains tax rise speculation grows as top aide backs 'politically wise' post - The Telegraph

Sir Keir Starmer’s most senior aide has sparked fresh fears Labour is planning to raise capital gains tax for property owners and businesses.

Morgan McSweeney, the Labour leader’s chief of staff, “liked” a social media post which said the party would be “politically wise” to increase the levy.

He later removed the “like” and is understood to have told colleagues that it was accidental.

But the revelation will further fuel speculation that Sir Keir will look to raise billions by putting up the rate of capital gains if he wins the election.

Mr McSweeney liked a post on the social media site LinkedIn which was written by a parliamentary adviser to Labour MPs.

The post, put up on Saturday, said: “Labour would be wise politically to raise capital gains tax, it is an easy sell to the 3 in 100 that currently pay it – we have to ask ourselves what sort of society we want to live in. A small rise would bring in over £15bn – lifting the two child cap would cost £1.6bn. Sounds a good idea to me!”

The levy has to be paid on the profit made on assets including second homes, shares and business resources such as land and buildings.

It is charged at a basic rate of 20 per cent – half the 40 per cent higher rate income tax level – which some Labour politicians have suggested is unfair.

Some, including Angela Rayner, the deputy leader, have previously suggested equalising the two rates meaning that capital gains would be doubled.

Rachel Reeves, the shadow chancellor, is among those opposed to a rise having argued that one would hammer many small business owners.

But she is said to be under growing internal pressure to change her tune.

Sir Keir was last week forced to rule out applying the tax to the sale of family homes following relentless pressure from the Tories.

At the same time Wes Streeting, the shadow health secretary, refused to rule out future council tax rises as he said Labour wants to spend more than is set out in its manifesto.

The Conservatives have looked to hammer home warnings that Sir Keir is planning to unveil massive tax rises once he gets the keys to No 10.

They have accused Labour of planning 17 separate “secret” tax rises including the raising of capital gains tax on businesses.

Laura Trott, the Chief Secretary to the Treasury, said: “Labour think they can hide these secret tax rises until after the election, but we won’t let them get away with it. 

“Keir Starmer should come clean with the British people.”

Labour has repeatedly insisted that it has no plans to raise taxes beyond the targeted raids it has already announced on private schools and non-doms.

But the party has also failed to rule out any increases except to rates of income tax, national insurance and VAT, plus capital gains on family homes.

Mr Streeting failed to rule out an increase in council tax - either by upping the rate or re-evaluating property prices - if Labour wins the general election.

He insisted there would be no “tax surprises” beyond the £8.3 billion worth of increases that his party unveiled in last week’s manifesto.

But he pointedly refused to categorically commit to keeping council tax down, telling the BBC: “We don’t want to see the tax burden on working people increase.

“None of those pledges in our manifesto requires increases in council tax or increases in fuel duty or any of the other number of taxes the Tories are claiming we want to increase.”

He also opened the door to more big spending in future by admitting that the manifesto is not the “sum total” of Labour’s spending plans.

He told Sky News that the document does not cover all of his party’s budget plans, though he insisted it would only splash more cash if the economy grows.

“We will not make promises we cannot keep or that the country cannot afford,” he added.

Senior Labour figures have dismissed Tory claims as fabricated and have said they are a sign of Rishi Sunak’s campaign becoming increasingly “desperate”.

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2024-06-16 19:48:00Z
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