A former Treasury minister has strongly advised against raising capital gains tax, describing such a move as unwise. Lord O’Neill of Gatley, who served under Prime Ministers David Cameron and Theresa May before becoming a crossbench member of the House of Lords, expressed his concerns ahead of the upcoming Budget scheduled for October 28.

In remarks to the press, Lord O’Neill emphasized that increasing capital gains tax could send a negative signal to businesses and investors. He suggested that such a decision might undermine the progress made by the current government in fostering a more favorable economic environment. According to Lord O’Neill, the Prime Minister has done a commendable job so far in improving confidence among market participants.

The debate comes as the government weighs options to address fiscal challenges and fund public services. Advocates of raising capital gains tax argue it would generate additional revenue and promote greater tax fairness, while opponents caution that higher rates could deter investment and harm economic growth.

As the Budget date approaches, officials are expected to consider a range of measures to balance economic stimulus and fiscal responsibility. Lord O’Neill’s comments add to a broader discussion about the potential implications of tax policy changes on the UK’s economic outlook.