Capital gains Reeves under pressure to raise tax rate

Rachel Reeves is under pressure from Labour shadow ministers to raise capital gains tax as part of an autumn budget at which the shadow chancellor is considering up to a dozen new revenue-raising measures.

- Anna Isaac, Kiran Stacey

Members of the shadow cabinet want Reeves to increase rates of capital gains tax (CGT) as a way to raise billions more to pay for public services, as she has already ruled out raising income tax, national insurance and VAT.

Labour is planning a big package of measures this autumn, according to party sources, and Reeves is looking for a "doctor's mandate": the state of the public finances is so bad, she will argue, it will need major surgery to correct.

One source said: "Rachel has between 10 and 12 measures she is looking at which she hasn't yet announced, all of which will raise small pots of money, with the ambition they should add up to something all together."

Another said that the shadow chancellor wanted to take a "kitchen sink" approach to raise tax income and pursue radical reform and investment in public services.

The person acknowledged: "That is not what they are presenting the public with right now."