Jim O'Neill warns UK government against business tax hikes

Lord Jim O’Neill, an ally of Prime Minister Andy Burnham, has warned the government against implementing tax increases that could harm business confidence. Speaking to the Treasury Select Committee, the former Goldman Sachs Asset Management chairman expressed strong opposition to potential hikes in capital gains tax, stating that businesses currently feel “beaten up.”

O’Neill also cautioned against further taxes on banks. He noted that while the UK economy could potentially see annualised growth of 2 per cent due to strong performance in the first half of the year, recent decisions—such as Rachel Reeves’ increase in national insurance contributions paid by businesses—may have caused significant shock to employers.

Additionally, O’Neill suggested that previous economic forecasts may have underestimated productivity. He noted that initial data indicates a pick-up in productivity over the last year, with output per hour worked showing improvement.