Labour has two aims in the budget: to make tax rises and spending cuts that close a spending gap in day-to-day Whitehall budgets of about £40bn, and to increase the funds available for investment.According to government sources, the £40bn includes the £22bn shortfall left behind by the previous Conservative administration and an extra top-up for areas such as schools, hospitals and defence.Reeves has said there will be “no return to austerity”, which suggests most of that gap will need to be filled with tax rises rather than spending cuts.Investment is expected to be governed by a new budget rule that will allow the Treasury to increase borrowing by up to £53bn, to allow investment in a wide range of infrastructure projects. Here we explore the potential measures.What tax changes might be in the budget?Capital gains tax (CGT)Taxable capital gains are concentrated among a small percentage of the population, with the tax levied on the increase in the value of an asset between…
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