Labour pledges to cut lifetime and annual allowances

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Labour will cap the pensions lifetime allowance at £1m and restrict the annual allowance to £30,000 to help fund a £2.7m reduction in tuition fees if elected, it has announced.

Disclosing its fourth election pledge on 27 February, Labour also confirmed it would reduce the tax relief available to additional rate taxpayers to 20%. The tax changes would pay for a reduction in the tuition fees cap from £9,000 to £6,000 and an increase in student maintenance grants, Labour said. Party leader Ed Miliband said: "Britain must not penalise the young, if we're going to prosper in the future. Let me say to Britain's young people: I made you a promise on tuition fees. I will keep my promise." Critics said the move would harm middle income workers and suggested furthe...

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