𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

John Healey is plotting a “£30billion tax bombshell” to plug a black hole in the public finances, Robert Jenrick has warned. The Reform Treasury spokesman predicted that taxes will rise when the Chancellor delivers his first Budget on October 28.

And Mr Jenrick accused Prime Minister Andy Burnham of treating pensioners as “an easy target”, after Mr Burnham announced plans to water down the state pension triple lock. The cost of UK government borrowing hit its highest level since 1998 this week, with an increase in the yield on 30-year gilts – the effective interest rate the Treasury pays to borrow money. It places more pressure on the Chancellor to find new sources of revenue.

Mr Healey noted in a recent interview that “we have the lowest capital gains tax of any European G7 nation”, sparking speculation that this is set to increase. Mr Jenrick insisted this would discourage investment in the economy and destroy jobs. He accused Labour of lacking the courage to reduce welfare spending rather than raise taxes.

In a speech at Westminster, Mr Jenrick said: “Let me give you a forecast of what’s coming in the Budget. The Chancellor started the year with £23billion of headroom. The bond market has eaten half of it.

“According to Labour’s manifesto, he can’t touch income tax, National Insurance or VAT. He has a care service to invent, benefits to pay for, and a defence budget to uplift. It all adds up to a £30billion tax bombshell. And we know where it will fall.”

Mr Jenrick highlighted Mr Healey’s comments and pointed out that Defence Secretary Wes Streeting and First Secretary of State Louise Haigh, a close ally of Mr Burnham, have also both called for capital gains tax to rise.

The Reform MP said: “Every business owner in the country is now doing the same sum: sell before the 28th, or better still leave the country.

“It’s shaping up to be a Budget to match his predecessor’s. Rachel Reeves took £40billion in her first and £26billion in her second. John Healey is lining up the next £30billion sucker punch.

“A triple whammy. A hat-trick of job-destroying, wage-stifling, price-raising, misery-inducing raids on people with the temerity to get up and go to work.”

Capital gains tax, typically paid when shares, property or assets such as a business are sold at a profit, is charged at 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers. Some Labour MPs have called for it to be equalised with income tax rates, which range from 20% to 45%.

Mr Jenrick slammed the Government for failing to cut the annual £333billion benefits bill, and accused Mr Burnham of making pensioners pay instead.

However, he said Labour’s plan to water down the state pension triple lock would not come close to paying for the Prime Minister’s promised National Care Service.

“It doesn’t even do the job. Cutting pensions raises about a fifth of what his National Care Service would cost. He is £17billion short and won’t say where the rest will come from,” said Mr Jenrick.

The Treasury said tax decisions are a matter for the Chancellor to set out at fiscal events such as the Budget, and it does not comment on rumour or speculation.

However, it has said it will not be increasing fuel duty this year, instead extending the temporary 5p fuel duty cut until December 31, while cutting VAT on electricity bills is expected to take around £45 off the Ofgem price cap from October.