Savers stage fresh stampede out of pension funds as Healey's Budget sparks more fear than Reeves's did

From the Newshound archive · first published 9 October 2026.

Capital Economics warns Burnham's government could impose up to £25bn in tax rises, targeting pensioners and entrepreneurs in what it calls a 'war on wealth'. The Bank of England Governor Andrew Bailey has also issued a 'Liz Truss warning', cautioning that imprudent spending plans could destabilise markets as bond yields risk rising further.

A total of £40bn has already been withdrawn from pension funds over the past two years as savers panicked under Reeves's two Budgets.

Capital Economics economist Ruth Gregory warned the forthcoming Budget 'could be almost as big as the last', with capital gains tax rises, a bank levy and higher inheritance tax all on the table.

John Lewis has also hit back at the threat of a Budget tax raid, with businesses and retailers joining savers in sounding the alarm ahead of October 28.