Budget: Row over 'granny tax' move

George Osborne is to freeze tax allowances for anyone over the age of 65 earning at least £10,500 a year, and scrap the relief entirely for those retiring from next April. The Chancellor said the move would simplify a "complicated" system and, by freezing the allowance at 2012/13 levels, would not leave pensioners worse off in cash terms. It is expected to save £1bn a year by 2015. He also said the measure is being introduced alongside an increase of £1,100 in the personal allowance. But Labour said it was a hidden tax rise which would affect millions, as the allowances would not b...