Labour govt would cut pension tax relief to 'fund job creation'

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The Labour Party has confirmed its policy to restrict higher-rate pensions tax relief to fund job creation will be in its 2015 manifesto.

This comes after chief secretary to the Treasury Danny Alexander announced last week there will be no changes to pensions tax relief in this year's Budget. The party's compulsory jobs guarantee would be funded for the whole of the next Parliament, rather than just a year, Labour leader Ed Miliband said. Labour has previously voiced plans to restrict pensions tax relief for people earning over £150,000 per year to the same rate afforded to basic rate taxpayers to fund jobs. A bank bonus tax would fund the first year of the policy, while the restriction on higher-rate pensions tax re...

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