Britain’s wealthiest individuals are devising escape strategies in response to potential changes in Capital Gains Tax (CGT) under Ed Miliband, who may become Chancellor under Andy Burnham. Business leaders are consulting international tax advisors to navigate a possible CGT expansion. Burnham has indicated a review of CGT is likely before his first budget. Meanwhile, Reform UK’s Treasury spokesman Robert Jenrick says in a piece for the Express that Mr Burnham has no mandate to impose tax rises on the British people.

Tax Policy Associates has assessed the potential impact of a land value tax (LVT) in London and the South East – a levy reportedly supported by Andy Burnham. Assuming a 1.28% levy on land value, more than 21,000 homes in London may face annual bills exceeding £50,000, the study found, while 576,000 properties could see bills above £10,000. Dan Neidle, founder of the think-tank, said he agreed with the idea in principle, but the short-term effects of the LVT “look too serious and the politics impossible.”

The Governor of the Bank of England has warned incoming Prime Minister Andy Burnham that economic growth is a critical issue for the UK, pointing out that the country has experienced low growth for nearly 17 years. Andrew Bailey went on to tell policymakers on Tuesday that the BoE was open to simplifying regulations further but stressed the importance of a robust set of rules to sustaining a healthy banking system. Meanwhile, Bloomberg reports that Treasury officials are preparing a gloomy forecast for Mr Burnham, who will be warned on Monday that the UK’s finances will be worse than expected during his first months in office, with inflation set to rise to a higher-than-expected 3.2% in the final three months of 2026.

UK borrowing costs exceeded 5% for the first time since May on Tuesday, driven by a global bond sell-off as hostilities between the US and Iran escalated. Ten-year gilt yields peaked at 5.05% before settling slightly lower due to US inflation data, but they remain up overall just before Andy Burnham becomes Prime Minister, leaving him with less fiscal headroom and higher funding costs. Meanwhile, President Donald Trump backed away from his plan to impose a 20% charge on cargo shipments through the Strait of Hormuz after various Gulf States promised to invest billions into the US.

Labour’s commitment to reform business rates is under scrutiny as businesses face rising costs. Ros Morgan, chair of the Real Rates Reform Alliance, points to a recent poll by Heart of London Business Alliance showing that 47% of businesses have seen their rates increase since April 2026. Many are responding by raising prices, delaying investments, or cutting staff. The alliance proposes a new hybrid business rate system, imposing a 2% levy on online sales to reduce rates for physical businesses by 37%. Morgan said: “For my members, this has become their number one issue.”

Andy Burnham has been warned that failing to reform the business rates system could breach Labour’s manifesto. Industry leaders, including UKHospitality’s chief executive Allen Simpson, stress the need for comprehensive changes to support high street businesses against online competitors. Simpson said: “If we come out of this parliament without having fixed the business rates system, the 130,000 job losses in hospitality will be much, much worse.”

The Confederation of British Industry (CBI) has urged Andy Burnham to eliminate net zero levies to reduce energy costs for businesses. Louise Hellem, the CBI’s chief economist, points out that 40% of businesses are cutting investment due to the UK’s high energy prices.

Andrew Bailey told policymakers on Tuesday that the Bank of England was open to simplifying regulations further but stressed the importance of a robust set of rules to sustaining a healthy banking system. The Governor of the Bank of England also said capital requirements for banks were important to absorb losses and protect deposits, while current regulation should be sufficient to prevent excessive profit-taking. In a speech to business leaders at Mansion House, Bailey also warned investment banks and hedge funds to consider the risks of deploying AI tools for trading. He noted that while human traders are held accountable, it remains unclear how regulators would manage errant AI systems.

The Financial Conduct Authority (FCA) has proposed reforms to simplify reporting for asset managers, potentially saving the industry £128m annually. The new framework, Fund Reporting for Asset Management Entities (FRAME), aims to modernise the outdated Alternative Investment Fund Managers Directive (AIFMD) rules. Simon Walls, FCA’s executive director of markets, said: “By tailoring the regime for UK asset managers, we can collect better data while also saving the industry tens of millions of pounds a year.” The consultation on these proposals will close on 22 September 2026.

The London Stock Exchange (LSE) faces criticism over proposed changes to governance standards for AIM-listed firms. A letter from the Quoted Companies Alliance (QCA) and six fund managers warns that relaxing these standards could damage investor trust and deter institutional investment. The LSE aims to reduce red tape, including the removal of “comply or explain” rules, but critics argue this could worsen an already challenging market. However, a spokesperson said 70% of stakeholders support the proposed changes, pointing to the need to make AIM competitive.

Labour has launched plans to close a customs loophole used by Chinese online retailers including Shein, Temu and AliExpress by introducing new fees on low-value imports. Goods worth £135 or less are currently exempt from import duties, but ministers say the system places an unfair burden on UK retailers and creates administrative costs. The Government aims to implement the changes by October 2028, six months earlier than planned, while retaining exemptions for low-value gifts between individuals.

Speaking at the annual Mansion House dinner in the City on Tuesday, the Chancellor, Rachel Reeves, told senior finance leaders that Britain’s relationship with the EU is more important than any other alliance. She said Brexit had damaged the UK economy and that “Britain’s future is inescapably bound with that of Europe.”