Investors cheer after Chancellor John Healey kills the Labour Left's hopes of a capital gains tax raid in next week's Budget

Wes Streeting and Louise Haigh had pushed to hike the 24 per cent higher rate on second homes and shares. HMRC's own estimate warned a 10-point rise would cut Treasury receipts by £3.6bn in 2028-9, because the wealthy could quit Britain or delay sales. Banks are instead expected to face a tax raid on October 28. Rathbones reports clients weighing whether to rush asset sales.

Lord Jim O'Neill, a former Burnham adviser, warned a hike sent 'the wrong message to business'.

Fears of a higher levy sparked a rush to sell assets before the last two Budgets.

Andy Burnham said Labour must be 'conscious' it has already raised taxes by £70bn.