Jim O’Neill: Capital gains tax hike looms as top option for Burnham

Lord Jim O’Neill has cautioned that an increase in capital gains tax is a likely option for Andy Burnham and his chancellor, John Healey, as they prepare their first budget in October. O'Neill suggested that with other major taxes already ruled out, capital gains tax presents an accessible method for raising revenue, aligning with traditional Labour think tank proposals to equalize it with income tax.

However, O'Neill, who declined a formal role in Burnham's team, expressed strong reservations, stating that such a move is "the last thing that should be happening" when the goal is to foster economic growth. He argued that it would discourage genuine risk-takers from investing or continuing their activities.

O'Neill also criticized the tone of Burnham's recent speech in the House of Commons, which implied increased government spending. He noted that investors are averse to such signals and questioned the global tendency for governments to spend without a clear plan for debt reduction and spending control. He urged Burnham to adopt a realistic approach to these challenges, despite portraying himself as a leader for change.