John Healey has moved to ease anxiety ahead of the Budget by ruling out hiking capital gains tax.
The Treasury has hardened up briefing that the package on October 28 will not increase the levy.
The move underlines the Chancellor's eagerness to avoid a fresh backlash from firms, who have already been hit with huge tax raids and minimum wage increases.
However, speculation is mounting that Mr Healey will opt to hit banks as he tries to find cash for Andy Burnham's pledges against the backdrop of the Middle East crisis.
The Labour Left - including some Cabinet ministers - has been clamouring for higher CGT on the sale of second homes, shares and other assets.
However, the prospect always looked difficult as the Treasury's own estimates suggest that increasing the tax would actually reduce revenue. That is because wealthy individuals could leave the UK or take other action to avoid paying.
John Healey has moved to ease business anxiety ahead of the Budget by ruling out hiking capital gains tax
Vacancies slump to 12-year low outside Covid despite unemployment easing
Brits have been warned of a 'flashing red light' on the jobs market today as figures showed vacancies at a 12-year low outside Covid.
With barely a week until Chancellor John Healey delivers the Budget, official data laid bare the fragile state of the market for workers.
Although unemployment dipped in the three months to August, payroll numbers were still down 66,000 over the year to September.
And the closely-watched vacancies metric showed they had dropped 21,000 to 691,000 in the three months to September.
That was the biggest decline since the three months to March, and the headline figure was the lowest since July to September 2014 apart from during the pandemic.
The Office for National Statistics (ONS) said the fall was mainly due to smaller firms who were struggling to cope with higher labour costs.
Labour has increased employers' national insurance, raised the minimum wage and added more workers' rights.
ONS deputy director of labour market statistics, David Freeman, said: 'While the labour market remains broadly flat in 2026, data from the latest quarter shows the employment rate edging up and a small drop in unemployment.
'The number of workers on payroll remains slightly down over the same period, though data for the most recent month suggests that might be starting to level off.
'The number of vacancies has seen its largest fall since the start of the year, concentrated mainly within smaller businesses, which cite increased labour costs as a key factor.
'Regular wage growth remained relatively stable, though total pay – including bonuses – has eased to its lowest rate in nearly six years.'
Economists have suggested Mr Healey could be helped by a windfall from higher inflation, which will drag people deeper into the tax system due to thresholds being frozen until 2031.
While that would be beneficial to his efforts to balance the books, it will also leave families worse off and put intense strain on public services unless departmental funding also rises.
Mr Healey has acknowledged that Britain finds itself in a 'tough' position ahead of the Budget.
Kemi Badenoch is using a speech this morning to warn the Government to slash spending by cracking down on welfare.
The Tory leader will urge ministers to 'live within our means', saying her plan for £70billion of cuts – including to benefits and the Civil Service headcount – is a starting point.
A poll has found that two thirds of Britons expect Labour to hike taxes at the Budget, while just 5 per cent anticipate the burden being lowered.
Some 58 per cent of people think the country is heading in the 'wrong direction', compared to just 18 per cent who believe things are looking up, the research by Ipsos found.
This comes despite Labour already raising the tax burden to a post-war high, with former chancellor Rachel Reeves hiking tax by £75billion at the previous two Budgets.
Sarah Coles, head of personal finance at AJ Bell, said of CGT increases being ruled out: 'Investors will be pleased to see the end of those potentially damaging Budget rumours, at least for now.
'It will hopefully stop people taking steps they might come to regret later and crystallising gains they might otherwise have been able to make gradually and avoid tax on entirely.
'Not raising the rate is probably a sensible move from a tax revenue perspective. The August tax receipt figures were a useful reminder that for this particular tax, tightening the screw doesn't always raise more money for the public finances.'