Chancellor Reeves Decides Against Pension Tax Hike
Chancellor Rachel Reeves has decided against raising taxes on pension contributions in the October budget after public sector unions warned this would negatively impact their members. Alternatives such as adjustments to capital gains and inheritance tax are being considered as the budget is finalized for the 30 October announcement.
Chancellor Rachel Reeves has opted not to raise taxes on pension contributions in the October budget after public sector unions warned of negative impacts on their members.
Reeves was contemplating cutting the 40% tax relief rate for high earners to raise an estimated £10 billion annually.
However, unions highlighted that such a change would affect nearly one million public sector workers, nullifying recent pay raises.
Other revenue-generating options are still under consideration, including changes to capital gains and inheritance taxes.
The government is finalizing budget decisions ahead of an announcement on 30 October.
Reeves was contemplating cutting the 40% tax relief rate for high earners to raise an estimated £10 billion annually.
However, unions highlighted that such a change would affect nearly one million public sector workers, nullifying recent pay raises.
Other revenue-generating options are still under consideration, including changes to capital gains and inheritance taxes.
The government is finalizing budget decisions ahead of an announcement on 30 October.
