Rachel Reeves has announced the Autumn Budget date as November 26. (Image: Getty)
Pensions may be the target of Rachel Reeves’ November Budget as experts warn that the move could backfire badly. A newly published report says the move would risk becoming a political "Omnishambles” if the Chancellor reduces pension tax relief in her fiscal statement. Pension consultancy firm LCP has cautioned that, despite the tax raid looking like an attractive revenue source for Ms Reeves, it may put additional pressure on employers who are already facing mounting challenges.
Steve Webb, co-author of the new report and partner at LCP said: "Raiding pension tax relief may look superficially attractive for a cash-strapped Chancellor. But lying beneath the surface are multiple traps for the unwary, meaning that reforms might raise far less than expected, break manifesto promises to workers or put additional burdens on employers who are already under pressure."
Article continues belowADVERTISEMENT
This new air conditioner cools down a room in just secondsNews of the Discovery |
Undo
DON'T MISS
Powered by
People reaching State Pension age urged to check for extra pay - what to do
Rachel Reeves 'eyeing up new ￡2bn tax raid' and this time doctors are the target
Rachel Reeves 8 potential Autumn budget tax hikes - from inheritance to pensions
Labour statement on changes to personal allowance for state pensioners
Labour gives update on plans for National Insurance tax break
Millions of workers over State Pension age could be due a pay boost from employer
Rachel Reeves bombshell as new taxes would be ‘last nail in the coffin' for 1 sector
Rachel Reeves' brutal tax moves could spell the end of UK charity shops
State pensioners given ￡1,000 savings warning - and told of 'rapid escalation in tax'
Massive mortgage hikes loom as experts issue warning over Rachel Reeves's ‘doom budget'
Petition to stop Reeves's inheritance tax on pensions hits major new milestone
Rachel Reeves given urgent warning against 'chopping and changing' pension rules
Proposal to bin the triple lock and spend the savings on university students
Major HMRC tax change within months for tens of thousands of people
New property tax rule could see some Brits pay extra ￡885 - check if you're affected
Civil servants miss 'shocking' number of work days by calling in sick
Update in 'raise income tax threshold to ￡20,000 from ￡12,570' plan
HMRC sending new tax codes to people with savings
Fury as UK council bosses handed ￡1m golden goodbyes ‘without approval'
Council tax 'cut for state pensioners' update in new 'means test' MP campaign
People reaching State Pension age urged to check for extra pay - what to do
Rachel Reeves 'eyeing up new ￡2bn tax raid' and this time doctors are the target
Rachel Reeves 8 potential Autumn budget tax hikes - from inheritance to pensions
Labour statement on changes to personal allowance for state pensioners
Labour gives update on plans for National Insurance tax break
Millions of workers over State Pension age could be due a pay boost from employer
Rachel Reeves bombshell as new taxes would be ‘last nail in the coffin' for 1 sector
Rachel Reeves' brutal tax moves could spell the end of UK charity shops
State pensioners given ￡1,000 savings warning - and told of 'rapid escalation in tax'
Massive mortgage hikes loom as experts issue warning over Rachel Reeves's ‘doom budget'
Petition to stop Reeves's inheritance tax on pensions hits major new milestone
Rachel Reeves given urgent warning against 'chopping and changing' pension rules
Proposal to bin the triple lock and spend the savings on university students
Major HMRC tax change within months for tens of thousands of people
New property tax rule could see some Brits pay extra ￡885 - check if you're affected
Civil servants miss 'shocking' number of work days by calling in sick
Update in 'raise income tax threshold to ￡20,000 from ￡12,570' plan
HMRC sending new tax codes to people with savings
Fury as UK council bosses handed ￡1m golden goodbyes ‘without approval'
Council tax 'cut for state pensioners' update in new 'means test' MP campaign
People reaching State Pension age urged to check for extra pay - what to do
Rachel Reeves 'eyeing up new ￡2bn tax raid' and this time doctors are the target
Rachel Reeves 8 potential Autumn budget tax hikes - from inheritance to pensions
Labour statement on changes to personal allowance for state pensioners
Labour gives update on plans for National Insurance tax break
Millions of workers over State Pension age could be due a pay boost from employer
Rachel Reeves bombshell as new taxes would be ‘last nail in the coffin' for 1 sector
Rachel Reeves' brutal tax moves could spell the end of UK charity shops
State pensioners given ￡1,000 savings warning - and told of 'rapid escalation in tax'
Massive mortgage hikes loom as experts issue warning over Rachel Reeves's ‘doom budget'
Petition to stop Reeves's inheritance tax on pensions hits major new milestone
Rachel Reeves given urgent warning against 'chopping and changing' pension rules
Proposal to bin the triple lock and spend the savings on university students
Major HMRC tax change within months for tens of thousands of people
New property tax rule could see some Brits pay extra ￡885 - check if you're affected
Civil servants miss 'shocking' number of work days by calling in sick
Update in 'raise income tax threshold to ￡20,000 from ￡12,570' plan
HMRC sending new tax codes to people with savings
Fury as UK council bosses handed ￡1m golden goodbyes ‘without approval'
Council tax 'cut for state pensioners' update in new 'means test' MP campaign
READ MORE: Fury as Rachel Reeves plots 'unfair tax grab on grandparents'
READ MORE: Rachel Reeves bombshell as new taxes would be ‘last nail in the coffin’
Targeting pension tax relief could backfire, experts warn (Image: Getty)
The report, titled ‘How to avoid an Omnishambles Budget', identified the pitfalls of the potential targets for Treasury savings. These include eliminating enhanced tax relief for higher-rate taxpayers, restricting or removing the 25% tax-free lump sum entitlement, and curtailing salary sacrifice arrangements.
However, the analysis has highlighted the issues with these areas, which includes breaking manifesto promises of not increasing taxes on workers, unfairly affecting public sector employees during negotiations, not generating substantial revenue, imposing additional costs on businesses and discouraging retirement savings.
Powered By
10 Sec
103.5K
8
UN chief reacts after Israel targets Hamas leadership in Qatar
Next
Stay
Mr Webb warned: "The political backlash against such reforms could easily echo previous Omnishambles Budgets where a U-turn was made within a matter of weeks."
Sponsored
15+ Food That Clean Arteries (Most People Ignore)
Undo
The experts say that the elimination of salary sacrifice schemes would be most impactful to the ordinary worker, as this currently allows for employees to decrease their NI contributions by putting their pay into pensions.
According to the report, up to three million basic-rate taxpayers would face higher costs.
DON'T MISS
Powered by
Rachel Reeves bombshell as new taxes would be ‘last nail in the coffin' for 1 sector
Rachel Reeves' brutal tax moves could spell the end of UK charity shops
State pensioners given ￡1,000 savings warning - and told of 'rapid escalation in tax'
Massive mortgage hikes loom as experts issue warning over Rachel Reeves's ‘doom budget'
Petition to stop Reeves's inheritance tax on pensions hits major new milestone
Rachel Reeves given urgent warning against 'chopping and changing' pension rules
Proposal to bin the triple lock and spend the savings on university students
Major HMRC tax change within months for tens of thousands of people
New property tax rule could see some Brits pay extra ￡885 - check if you're affected
Civil servants miss 'shocking' number of work days by calling in sick
Update in 'raise income tax threshold to ￡20,000 from ￡12,570' plan
HMRC sending new tax codes to people with savings
Fury as UK council bosses handed ￡1m golden goodbyes ‘without approval'
Council tax 'cut for state pensioners' update in new 'means test' MP campaign
Top 15 Most Beautiful Women in the WorldTopgentlemen.com |
Undo
People reaching State Pension age urged to check for extra pay - what to do
Rachel Reeves 'eyeing up new ￡2bn tax raid' and this time doctors are the target
The Weird Reason Chefs Are Calling This the Last Knife You’ll Ever NeedMatsato |
Undo
Rachel Reeves 8 potential Autumn budget tax hikes - from inheritance to pensions
Labour statement on changes to personal allowance for state pensioners
This new air conditioner cools down a room in just secondsNews of the Discovery |
Undo
Labour gives update on plans for National Insurance tax break
Millions of workers over State Pension age could be due a pay boost from employer
Why is everyone rushing to get their hands on this new air cooler?News of the Discovery |
Undo
Rachel Reeves bombshell as new taxes would be ‘last nail in the coffin' for 1 sector
Rachel Reeves' brutal tax moves could spell the end of UK charity shops
Access all TV channels anywhere, anytimeTechno Mag |
Learn More
Undo
State pensioners given ￡1,000 savings warning - and told of 'rapid escalation in tax'
Massive mortgage hikes loom as experts issue warning over Rachel Reeves's ‘doom budget'
An engineer reveals: 1 simple trick to get all TV channelsTechno Mag |
Learn More
Undo
Petition to stop Reeves's inheritance tax on pensions hits major new milestone
Rachel Reeves given urgent warning against 'chopping and changing' pension rules
Your Pillow Could Be Slowly Damaging Your Neck. Here's HowDerila Ergo |
Undo
Proposal to bin the triple lock and spend the savings on university students
Major HMRC tax change within months for tens of thousands of people
Neck Stiffness Every Morning? Here’s What You’re MissingDerila Ergo |
Undo
New property tax rule could see some Brits pay extra ￡885 - check if you're affected
Civil servants miss 'shocking' number of work days by calling in sick
Top 15 Most Beautiful Women in the WorldTopgentlemen.com |
Undo
Update in 'raise income tax threshold to ￡20,000 from ￡12,570' plan
HMRC sending new tax codes to people with savings
This new air conditioner cools down a room in just secondsNews of the Discovery |
Undo
Fury as UK council bosses handed ￡1m golden goodbyes ‘without approval'
Council tax 'cut for state pensioners' update in new 'means test' MP campaign
People reaching State Pension age urged to check for extra pay - what to do
Rachel Reeves 'eyeing up new ￡2bn tax raid' and this time doctors are the target
Rachel Reeves 8 potential Autumn budget tax hikes - from inheritance to pensions
Labour statement on changes to personal allowance for state pensioners
Labour gives update on plans for National Insurance tax break
Millions of workers over State Pension age could be due a pay boost from employer
Rachel Reeves bombshell as new taxes would be ‘last nail in the coffin' for 1 sector
Rachel Reeves' brutal tax moves could spell the end of UK charity shops
State pensioners given ￡1,000 savings warning - and told of 'rapid escalation in tax'
Massive mortgage hikes loom as experts issue warning over Rachel Reeves's ‘doom budget'
Petition to stop Reeves's inheritance tax on pensions hits major new milestone
Rachel Reeves given urgent warning against 'chopping and changing' pension rules
Proposal to bin the triple lock and spend the savings on university students
Why is everyone rushing to get their hands on...News of the Discovery
Undo
Sponsored LinksSponsored Links
Access all TV channels anywhere, anytimeTechno Mag
Undo
Sponsored LinksSponsored Links
An engineer reveals: 1 simple trick to get all TV...Techno Mag
Undo
Sponsored LinksSponsored Links
Your Pillow Could Be Slowly Damaging Your...Derila Ergo
Undo
Sponsored LinksSponsored Links
Tim Camfield, report co-author and principal at LCP said: "Millions of people on modest incomes benefit from various features of the tax relief system, including the ability to sacrifice salary and benefit from a reduced National Insurance bill."
Ms Reeves has pledged to not raise income tax, VAT or National Insurance, meaning pensions may be a “low hanging fruit” to raise cash.
"Any such change could undermine pension saving and confidence in the system and should be avoided,” Mr Camfield adds.
Read next
SUBSCRIBEInvalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy