Labour declines to rule out capital gains tax hikes as Lib Dems vow reform

Labour frontbencher Jonathan Ashworth has declined to rule out rises to capital gains tax amid mounting media scrutiny of its tax plans, as the party prepares to unveil its general election manifesto later this week.

When asked at a press conference on Monday about Labour’s plans for capital gains tax in government, the Shadow Paymaster General pointed to existing plans to rule out hikes to income tax and national insurance – but did not address capital gains specifically.

He said: “There is nothing in our plans that requires additional tax to be raised. Our commitments on tax are crystal clear with our triple lock approach – no increase in national insurance, no increase in income tax, no increase in VAT.

“And we will never play fast and loose with public finances; it puts mortgages up. And any tax commitment the Tories offer tomorrow, it will be based on savings they cannot find.”

Leader Keir Starmer has also declined to rule out capital gains tax hikes in recent days.

READ MORE: Starmer pledges no Labour return to austerity but warns of ‘tough decisions’

Many on the left regard the current system as unfair and ripe for reform. The scrutiny on Labour follows a pledge by the Liberal Democrats in their manifesto on Monday to reform capital gains tax “to close loopholes exploited by the super wealthy.”

Labour’s decision to vow a new “triple lock” of no hikes to NI, income tax or VAT in its first term also comes after the Prime Minister and the Tories ramped up highly questionable claims Labour would impose around £2,000 of tax hikes over four years on the average working family.

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