John Healey has rejected calls to raise capital gains tax at the Budget, amid concerns it could hamper economic growth.
The tax applies to the profit made from selling off assets like a house or shares.
Several prominent Labour voices, including Wes Streeting and Louise Haigh, both spoke of raising capital gains tax over the summer, before Andy Burnham became Prime Minister.
But Mr Healey has ruled out the move after warnings it could end up costing the government money if wealthy people leave the country or defer selling off assets, according to the Times.
Lord O’Neill of Gately, who has advised Mr Burnham and worked on the Northern Powerhouse project, told the newspaper that “raising capital gains tax would send very much the wrong message to business”.
The biggest revenue-raising measure set to be in the Budget is an increase in the rate banks pay on their profits, widely reported across the media last week.
That is expected to fund cost-of-living support for households and businesses.
The Chancellor has acknowledged that Britain finds itself in a “tough” position ahead of the Budget, and is reported to be downplaying the prospect of major revenue-raising measures in his October 28 statement.
Conservative leader Kemi Badenoch is meanwhile due to warn the Government to slash its spending plans, and reduce its borrowing at the Budget.
In a speech on Tuesday, she will urge Mr Burnham and his Chancellor to “live within our means”, and signpost the Tories’ package worth £70bn of cuts to spending – including to welfare and the civil service headcount – as a place to start.
Pre-Budget polling by Ipsos has meanwhile revealed that the majority of the public have a mixed opinion of the Chancellor, as 67 per cent of them believe he is doing neither a good nor bad job.
The survey of 1,077 Britons carried out between October 9 and 12 also found that 65 per cent of the public is expecting some form of tax rise at the Budget.
Read MoreUK unemployment falls - but vacancies drop to five-year low in huge jobs challenge
Drivers to get new rights to challenge ‘rip-off’ private parking charges
All the new parking rules being introduced to outlaw 'rip-off' charges
