Cabinet rift over Budget tax plans

Britain / 29 October 2026 Farage says Reform UK members can support Tommy Robinson after harassment conviction 29 October 2026 Justice System / 29 October 2026 Russel Brand mouths words to wife during character statement 29 October 2026 Workers’ Rights / 29 October 2026 ‘No further delay’ on 50% thresholds as new union powers come into force 29 October 2026 Big Tech / 29 October 2026 Social media age checks effective but not foolproof, Ofcom warns 29 October 2026 Healthcare / 29 October 2026 Thousands of patients unable to access GPs online after collapse of tech firm 29 October 2026 Britain / 29 October 2026 Poundland on the brink of collapse with 12,000 jobs at risk 29 October 2026 CABINET splits are growing ahead of the Budget next week, with senior figures fearing that Chancellor John Healey is set to appease business and the City.

Foreign Secretary Ed Miliband, in particular, is known to be critical of Mr Healey’s briefed decision to rule out any increase in capital gains tax.

Increasing CGT to lessen pressure on public spending has been championed by Prime Minister Andy Burnham’s effective deputy, Louise Haigh, and by Defence Secretary Wes Streeting, himself looking for a cash boost for the military.

Yet all indications are that Mr Healey’s Budget will prioritise curbing state debt in line with the Treasury’s fiscal rules through pressure on spending rather than taxing the wealthy.

He seems to have ruled out tax rises altogether, beyond a windfall tax on bank profits.

The Cabinet-level disquiet is beginning to be echoed more broadly on Labour’s powerful “soft left.”

At a private meeting last week, leading figures from across the faction expressed some dismay at the government’s drift, including at the failure of more of them to be appointed to ministerial and senior staff positions by Mr Burnham.

One MP did claim that the left had built “a bridge into the government’s cerebral cortex,” but it is unclear how much traffic is passing over it.

Total national debt passed three trillion pounds for the first time today, as inflation also edged upwards in September, to 3.5 per cent, a rise of 0.4 per cent from August, adding to pressure on the Chancellor.

Mr Healey said: “We know that price rises from conflicts in the Middle East and Europe are hitting Britain and countries worldwide.

“Last week the IMF said our UK fiscal discipline stands out with the lowest forecast deficit in the G7 by 2029.

“In my Budget next week, I will keep up this momentum. Maintaining our fiscal discipline and drive for growth in every postcode, while giving businesses and families some breathing space.”

Mr Burnham told MPs today that he had asked Mr Healey and Energy Secretary Miatta Fahnbulleh to look at scrapping standing charges on gas bills.

If the measure goes ahead, it could save households around £100 a year on average.

The Prime Minister also leant on the International Monetary Fund report to talk up Britain’s economy. He said it praised Britain as the “standout nation for deficit reduction” and, alongside the US, the fastest growing economy in the G7.

Budget / 28 October 2026 Tax the banks to help workers, TUC tells Healey 28 October 2026 Economy / 20 October 2026 Act for workers in Budget, TUC urges Healey 20 October 2026 Economy / 13 October 2026 £35bn hole in Healey’s ‘work of fiction’ Budget bid 13 October 2026 The IMF’s stark warning to the Chancellor as global instability and war is set to further drive prices up