Liam Fox calls on Osborne to entirely scrap capital gains tax

FORMER cabinet minister Liam Fox will today call on the government to abolish capital gains tax in the latest sign that right-wing Tories are increasingly exasperated with weak economic performance.

The ex-defence secretary will argue that the Conservative party has been too willing to accept the “socialist narrative” of the Labour government and radical action is required to kickstart growth.

Fox will also call for an end to the ringfencing of the health, aid and education budgets.

“I would like to see capital gains reduced, if possible to zero, for a defined period before being reintroduced at a more sensible level,” Fox will tell the Institute of Economic Affairs.

“This would create a tax window where businesses that are sitting on assets might be encouraged to sell, investment in capital becomes more attractive and where hundreds of thousands of second homes might come on the market.”

Since Fox was forced to quit in 2011 he has become a standard bearer for right-wing Conservative MPs.