Healey vows to back 'bloody-minded entrepreneurs' while preparing a tax raid on retiring business owners in next week's Budget

Business Asset Disposal Relief, which cuts the capital gains tax liability on business sales, faces significant restrictions on Wednesday, October 28. HMRC figures show the relief cost the Treasury £800 million in the last tax year. That money could instead be used to support lower capital gains tax rates for founders who reinvest and create jobs in Britain. Experts warn the move risks punishing entrepreneurs who devoted years to building their companies.

Rachel Reeves already raised the relief's tax rate to 14 per cent, then 18 per cent this April.

Healey insists: 'If you're not making a profit, you've got nothing to put back into the business.'

Labour created the relief in 2008, when sellers paid just 10 per cent capital gains tax.