- The Tony Blair Institute for Global Change has cautioned Andy Burnham against “taxing our way to prosperity” by increasing capital gains tax, arguing it would deter innovation and harm the UK economy.
- Guy Ward-Jackson, a senior analyst at the institute, said that such a tax hike would send the wrong signal to entrepreneurs and make Britain less competitive.
- Capital gains tax is currently levied on profits from investments or assets above £3,000, with rates between 18 and 24 per cent, while income tax rates range from 20 to 45 per cent.
- Aligning capital gains tax with income tax could potentially raise £12 billion annually, according to the Centre for the Analysis of Taxation.
- Andy Burnham, a prominent political figure, has indicated openness to tax adjustments, and his allies, including Wes Streeting and Louise Haigh, have supported bringing capital gains tax closer to income tax rates.
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