Labour pulls back from pensions tax relief changes – reports

Government reportedly looks elsewhere to fill public finance 'black hole'

Jen Frost
clock • 2 min read

Labour is not expected to move forwards with plans to cut higher earner pensions tax relief, according to reports.

Senior Treasury officials are understood to have told chancellor Rachel Reeves that a reduction of the 40% level of tax relief on higher earners would disproportionately hit individuals working for the state with relatively modest incomes, The Times reported. One government figure said it would be "madness" to hit public sector workers with large tax rises after giving them a pay rise, according to The Times. Another government source that spoke to the paper flagged Labour's decision to drop plans for a reintroduction of a cap on the lifetime allowance (LTA) on pension savings, citing...

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