UK politics live: Centrist Tories reject both leadership rivals as Jenrick attacks Badenoch’s ‘needless drama’

Sources close to Rachel Reeves are strongly denying that she plans to hike capital gains tax by as much as 15 per cent to 39 per cent.

A report in the Guardian suggested that Ms Reeves’ tax raising plans “are in disarray” and she has asked Treasury officials to consider modelling for raising capital gains tax to 33 per cent or 39 per cent.

But a source close to the chancellor hit back claiming the story was “badly sourced”.

“These claims are inaccurate,” they said, adding that they did not comment on “pure speculation” regarding specific tax measures before a budget.

The speculation comes as the Institute for Fiscal Studies warned that Ms Reeves will need to find as much as £25 billion to meet her spending commitments.

Currently around 350,000 people a year pay the wealth tax on sales of assets and it raises about 315 billion a year for the Treasury. The Tories reduced the amount paid on residential properties being sold off by landlords to 24 per cent.

The Conservative leadership election has been whittled down to the two final candidates, as Kemi Badenoch and Robert Jenrick face off for a final month of campaigning.

Both MPs are considered to be on the right of the party, with Labour officials reportedly rejoicing that the more centrist – and perhaps more electable – candidate James Cleverly was knocked out in a surprise result.

Anti-migrant policies, social conservatism and Euroscepticism are part and parcel of both the remaining candidates’ views – but there are also a few key differences between them:

Health experts are sounding the alarm as new data revealed the NHS is heading into the winter season “in bad shape”.

Experts at King’s Fund warned the health service has shown deteriorating performance across key measures.

The charity’s chief analyst highlighted a concerning picture of rising financial pressures, ongoing strikes and missed targets.

Siva Anandaciva said: “The NHS is approaching winter in bad shape.

“Industrial action is continuing, financial pressures are rising, and important performance targets continue to be missed.

“Despite the hard work of staff, patient care in the NHS continues to fall short of expectations.

“Today’s statistics show it has been three years since A&E performance was above the current temporary target of 78 per cent of people waiting under four hours and nearly a decade since the official target of 95 per cent of people being seen in four hours was met.”

A bill on assisted dying will have its first debate on 29 November, Labour MP Kim Leadbeater has said.

It will be the first time in almost a decade MPs have debated and voted on the subject in the House of Commons in almost a decade.

Her private member’s bill (PMB) on choice at the end of life for people with terminal illness will be formally introduced in Parliament on Wednesday.

The details of the legislation will be published ahead of the first full debate and vote on 29 November, Ms Leadbeater’s office said.

Rachel Reeves is reportedly considering a significant rise in capital gains tax (CGT).

As Labour faces growing pressure to find funding for strained public services, the chancellor could hike the tax as high as 39 per cent.

Treasury reports, seen by The Guardian, suggest officials are examining CGT rates in the range of 33 per cent to 39 per cent, far higher than current levels.

The tax, which affects around 350,000 people and is levied on the sale of assets like second homes and shares, currently operates at much lower rates than income tax.

With a looming £25 billion fiscal gap highlighted by the Institute of Fiscal Studies (IFS), Labour’s budget preparations are increasingly focused on wealth taxes.

Although Sir Keir Starmer and Ms Reeves have promised not to raise taxes for “working people”, other tax options, such as targeting non-domiciled individuals or private equity, have faced setbacks.

In a faux pas bordering on farce, the opposition finds itself faced with a choice between two hard right-wingers differing only in the extent of their extremism, writes Sean O’Grady:

The Tory Reform Group (TRG), representing One Nation Conservatives, has declined to endorse either Robert Jenrick or Kemi Badenoch in the leadership race.

The TRG, a traditionally centrist faction within the party, criticised both candidates for straying too far from the party’s core values.

In a statement, the group said it had “engaged extensively” with all leadership hopefuls but was left unimpressed by the two finalists, accusing them of adopting a rhetoric that diverges from the principles that define the Conservatives.

The TRG said: “As the home of One Nation Conservatism since 1975, the TRG is committed to being radically moderate, values-driven, and focused on the future.

“Throughout the contest, we have sought to engage extensively with all the leadership campaigns in order to understand the views and approaches of the candidates. Unfortunately, we have been consistently disappointed by the lack of engagement from the two candidates chosen by MPs.

“TRG members were consulted throughout the process, and the results clearly show that neither candidate has secured widespread support from the majority of our membership.

“Both have used rhetoric and focused on issues which are far and away from the party at its best, let alone the One Nation values we cherish and uphold. Therefore, the board of the TRG has unanimously concluded that we are unable to endorse either candidate.”

Robert Jenrick has rejected suggestions that Tory MPs mistakenly backed him for the final two in the leadership race, following speculation about internal “horse trading”.

Speaking after a speech today, he was asked whether he could have made it to the final by mistake.

The former immigration minister acknowledged that there is always some manoeuvring in such contests but was confident that MPs ultimately chose him based on his leadership credentials.

In response to a question on his strengths compared to frontrunner Kemi Badenoch, Mr Jenrick emphasised his focus on key voter concerns such as the NHS, immigration, and the economy, suggesting his campaign’s broader appeal compared to his rival’s.

“I believe my colleagues voted for the candidates best placed to lead the party forward,” he said, adding that he was “immensely grateful” for the trust.