Is Labour considering tax hikes to capital gains or inheritance tax?

Labour has spent much of the past fortnight playing down the prospect of tax hikes, explicitly ruling out rises to income tax, VAT and national insurance and suggesting its manifesto does not need further tax hikes.

But The Guardian reported unnamed sources claiming on Friday that increases in capital gains tax (CGT) are under consideration by Labour, in a significant development likely to spark fresh tax attacks by the Conservatives.

Increases in inheritance tax are also reported to be under consideration.

A senior Labour source told the Guardian:“We are starting from ground zero with our public services and infrastructure.

“We have to show we are serious about borrowing and raising revenue from taxes if investors are going to walk in step with us. These measures are part of unlocking wealth and putting it to work.”

READ MORE: Rachel Reeves says Labour has ‘no plans’ to increase capital gains tax

The paper also reported that any options would be presented to the Office for Budget Responsibility (OBR) for analysis.

A second source told the paper: “We have to show we are credible when it comes to transforming the country. Fiscal credibility means reforming tax as well as prudent borrowing.”

But a Labour spokesperson said: “Keir and Rachel have made clear that our priority is growing the economy, not increasing taxes. We have set out fully costed, fully funded plans, with very specific tax loopholes we would close. Nothing in our plans requires any additional tax to be increased.”

In a recent Guardian interview, Reeves denied that there would be any plans for new revenue-raising in a potential autumn budget this year.

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