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

clock

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Reeves to consider £2bn raid on tax-free pension lump sum

Reeves to consider £2bn raid on tax-free pension lump sum

Telegraph reports PCLS cut could help plug £50bn public finances hole

Jonathan Stapleton
clock 21 August 2025 • 3 min read
State pension age review: Govt launches call for evidence

State pension age review: Govt launches call for evidence

UK faces long-term demographic pressures

Jenna Brown
clock 18 August 2025 • 2 min read
'Barriers are institutional, not technical': Industry split over ten-day pension switch proposal

'Barriers are institutional, not technical': Industry split over ten-day pension switch proposal

After PensionBee calls for a legally enforceable transfer guarantee

Sahar Nazir
clock 18 August 2025 • 2 min read