The budget's grand reveal had all the shock value of a rerun, thanks to the drip-feed of leaks that preceded it, however this won’t have entirely prevented the market impact now that these policies are confirmed. In the lead-up to this announcement, the anticipation of higher capital gains tax led to increased volatility as some investors rushed to sell off profitable shares to lock in current tax rates. Of course, today’s CGT hike increase could still be considered somewhat muted compared with the rumours of a potential rise on par with income tax rates.

However, there is a real concern that this increase could lead many investors to question the remaining benefits of investing and business creation when the rewards are taxed away. This could stifle innovation and slow the flow of capital into emerging sectors, with investors favouring safer, lower-yield assets over volatile, high-return opportunities, discouraging investment in small businesses.