Labour figures are calling for wealth taxes in the October 28 Budget to fund public spending and cost-of-living support. Millionaire party donor Dale Vince has proposed raising Capital Gains Tax to income tax rates (45%) and ending interest payments on commercial bank deposits, claiming this could generate £14 billion and fund a £3,000 increase in the personal allowance. However, the government faces fierce criticism that such measures would backfire, with concerns that wealthy individuals could relocate and revenues could fall rather than rise.

The Treasury's own estimates indicate that a 10 percentage point rise in CGT would actually reduce revenues by £3.5 billion by 2028-29, undermining the proposal's financial case. Conservative critics, including former Treasury minister David Gauke, argue the policy could harm investment, job creation and lending to small businesses. The push for wealth taxes reflects the government's fiscal pressures, with the Middle East crisis and inflation concerns limiting the Budget's fiscal room, whilst the cost-of-living crisis drives demands for greater support from unions and party members.