UK's Labour considers upping capital gains and inheritance taxes, Guardian reports

FILE PHOTO: British opposition Labour Party leader Keir Starmer speaks at the launch of the Labour Party's manifesto, in Manchester, Britain, June 13, 2024. REUTERS/Phil Noble/File Photo

(Reuters) -Britain's opposition Labour Party is considering raising capital gains tax and altering inheritance tax to help fund public services if it wins the July 4 election, the Guardian newspaper reported, citing sources and documents.

An increase in capital gains tax could raise 8 billion pounds ($10.10 billion), the Guardian said.

Labour also wants to make it harder for people to gift money and assets under the inheritance tax regime. In total the measures could be worth 10 billion pounds, the Guardian said, citing a document from the party.

In response, the Labour Party said its priority was growing the economy rather than raising taxes.

"We have set out fully costed, fully funded plans, with very specific tax loopholes we would close. Nothing in our plans requires any additional tax to be increased," a Labour spokesperson said.

Britain's governing Conservative Party said the report showed that Labour was not being upfront with the public about its tax plans.

"(Labour leader) Keir Starmer should have the courage and conviction to be honest with the British people about the tax rises Labour are planning," finance minister Jeremy Hunt said in a statement.

Opinion polls show Labour is on course for a huge majority in parliament.

Starmer has pledged not to raise the main taxes paid by working people, and has sought to push back on any suggestion that a Labour government could have an immediate big impact on issues like the cost of living and standard of public services.

Prime Minister Rishi Sunak's Conservatives have sought to turn the spotlight onto tax, saying a Labour government would cost households more.

However, the tax bill is already at a 70-year high and will continue to rise even if the Conservatives win because both parties have pledged to freeze tax thresholds.

($1 = 0.7921 pounds)

(Reporting by Andy Bruce; Editing by Sachin Ravikumar)