CHANCELLOR Rachel Reeves is reportedly planning a “stealth tax raid” of £240 a year on the retirement savings of workers.
Reeves is expected to target salary sacrifice pensions, with a cap on how much a worker can save tax-free, in the Budget later this month.
Salary sacrifice allows employees to deposit a share of their income – matched by their employer – into a pension scheme.
There is currently no limit on how much a worker can save before paying national insurance – but the reported plan to cap the limit could raise up to £2 billion a year.
Earlier this week Rachel Reeves told the budget watchdog that she planned to increase income tax, which would be a breach of Labour’s manifesto.
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