November Budget cancelled to 'get Brexit done', chancellor says

HM Treasury announced the Budget date earlier this month, but noted the likelihood of it going ahead remained uncertain and dependent on the outcome of Brexit negotiations.

Speaking on BBC Breakfast this morning (25 October), chancellor of the Exchequer Sajid Javid (pictured) noted that "what is more important right now is getting Brexit done and then having that general election".

He said: "Now we have to accept we won't be able to leave on 31 October because parliament has requested an extension."

EU ambassadors are currently in discussion as to what length of Brexit extension to offer the UK.

The November Budget would have been the chancellor's first fiscal announcement amid a backdrop of economic and political uncertainty, which experts have warned could have a negative impact on pensions.

Sackers partner Claire Carey said it is unclear, if anything, what the chancellor might have "had up his sleeve" on pensions.

She added: "The tapered annual allowance has become more of a focal point over the last year, given the impact it seems to be having on those working in crucial public services.

"Whether this would have prompted a more widespread review remains a mystery, at least for now."

It has come amid a stream of calls from the pensions industry and beyond urging the government to reform tax relief rules.

Hymans Robertson partner Rona Train said the budget cancellation stands out as "another missed opportunity by government to simplify the tapered annual allowance".

She said: "The taper is a huge disincentive for pension saving for high earners and their employers who are being paralysed by the complexity of the system. Changing the allowances might also improve the engagement of senior management with their company pensions schemes.

"Currently, many can no longer contribute to their schemes because of the allowances and their interest in the scheme and its ongoing governance has waned."

In August, the government put forward proposals to review pensions tax relief rules in order to give senior NHS clinicians full flexibility over the amount that they contribute to their pensions, although it is not yet clear whether it will go ahead with reforms.

A pension schemes bill was last week laid in parliament, which included plans to extend the powers of The Pensions Regulator, allow collective defined contribution schemes, and introduce compulsion for the pensions dashboard.

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• Sajid Savid