Feature article: Labour’s first Budget - Investors in their sights? Summary ► Budgets are always important for investors. ► The imminent Budget, at the end of October, will be doubly so, because it is the first from the new Labour government, and it has already signalled the need to fill an alleged £22bn black hole, while ruling out changes to more than half the tax base. That implies a lot of the pain will be felt by investors. ► This paper considers the impact of increases in rates for those taxes that affect investors, and the withdrawal of tax concessions and reliefs. ► We apply four “critical” tests to each measure to judge whether: o it will raise more tax immediately; o it will help grow the economy; o only the rich will suffer; and o it will be complex to effect. ► Of course, increased taxes and reduced relief are never likely to encourage growth; meanwhile, one of the aims of the new chancellor is to get Britain growing again. However, some measures will have greater impact than others. ► Many of the measures that it would appear are being contemplated would raise little additional revenue. ► Some of the measures will negatively affect liquidity in company shares as well as make funds more attractive than company shares. Altogether, this will make it more difficult for growth companies to raise cash on the equity market.