Reeves opts to not raise tax on pension contributions in October budget - The Guardian

8th October 2024

The Guardian newspaper reports (7 October 2024) that Rachel Reeves may not move to reduce tax reliefs on pension contributions.

Rachel Reeves has decided not to raise tax on pensions contributions in this month's budget, after public sector unions warned that doing so would hurt their members.

The chancellor is understood to have decided against the move, which had been considered as one of a number of tax rises designed to repair the hole in the public finances.

Reeves had been considering reducing the 40% rate of tax relief that higher earners enjoy on pension contributions, in a move that could have raised £10bn a year. Public sector unions warned, however, that doing so would hit almost 1 million of their members, erasing much of the pay increases that the government has just agreed.

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