Key facts
- UK Chancellor John Healey ruled out a capital gains tax hike ahead of the Budget.
- The Treasury confirmed the levy will not increase in the upcoming Budget on October 28.
- Vacancies in the UK jobs market fell to a 12-year low outside of the Covid pandemic in the three months to September.
- The number of vacancies dropped 21,000 to 691,000 in the three months to September.
- Smaller businesses cited increased labour costs as a key factor for the fall in vacancies.
UK Chancellor John Healey has moved to ease business anxiety ahead of the Budget by ruling out a hike in capital gains tax. The Treasury confirmed the levy will not increase in the upcoming Budget on October 28, aiming to avoid a backlash from firms already facing increased costs. Speculation persists that banks may face new taxes to fund policy pledges. Official data released on the same day showed UK job vacancies had fallen to a 12-year low outside of the Covid pandemic, with smaller businesses citing increased labour costs. The Office for National Statistics reported vacancies dropped 21,000 to 691,000 in the three months to September. While unemployment dipped, payroll numbers were still down year-on-year. Economists have suggested Healey could benefit from higher inflation dragging more people into the tax system due to frozen thresholds. However, some critics warn this could strain public services and that the government may resort to further borrowing and tax rises.