Hammond likely to cut pension tax relief in Budget - Webb

After extra £3bn cost to Treasury

Hannah Godfrey
clock • 2 min read

Following a £3bn increase in the cost of pension tax relief, the Chancellor is poised to take another bite from the pensions pie, Steve Webb has warned.

The former pensions minister, turned Royal London director of policy, said it was likely Chancellor Philip Hammond would introduce additional cuts to the annual allowance at next week's Budget. HMRC figures released last week showed pension tax relief cost the Treasury £3bn more in 2015-16 than in the year before, with the total figure growing from £21.8bn in 2014-15 to £24.8bn last year. Webb (pictured) thought these figures could persuade the 'cash-strapped' Chancellor there was more money to be taken from pension tax relief, despite already making cuts in last year's Autumn Stateme...

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