Burnham's Budget is set to hit pensioners and entrepreneurs with a £25bn 'war on wealth', economists warn

From the Newshound archive · first published 9 October 2026.

Ruth Gregory, who works at Capital Economics after a stint at the OBR, warned that Chancellor John Healey's first Budget on October 28 is expected to raise up to £25bn, with pensioners and entrepreneurs facing the heaviest burden. She said the tax-raising Budget 'could be almost as big as the last.' Burnham himself has previously declared that Britain 'over-taxed labour and under-taxed' wealth, signalling the direction of travel.

Substantial capital gains tax rises, a raid on pension relief, a £1.5bn bank levy and higher inheritance tax are all said to be under consideration.

Burnham is also facing fury over soaring fuel prices, with diesel now above £2 a litre, after he responded by pointing motorists to price comparisons on Google Maps rather than cutting fuel duty.