Autumn Budget set to weigh pension tax relief as Reeves faces pressure

Chancellor Rachel Reeves faces mounting pressure and stark warnings as she prepares to deliver her second Autumn Budget on November 26, with pension tax relief emerging as a likely target for new revenue and business groups urging a rethink of manifesto pledges not to hit working people. Pension consultants, economists and recruiters warned that moves to curb pension tax incentives could be politically costly, administratively complex and may do little to plug the public finances in the near term, while firms say they are already struggling after earlier employer tax rises.

A new report from consultancy LCP cautioned that trimming or capping pension tax relief could echo the political fallout of the 2012 Omnishambles Budget, delivered by then chancellor George Osborne, which provoked a rapid U‑turn. LCP coauthor Steve Webb said raiding pension tax relief "may look superficially attractive for a cash‑strapped chancellor" but warned reforms contain "multiple traps for the unwary" that could mean measures raise far less than expected, break manifesto promises and impose extra burdens on employers. His colleague Tim Camfield added that many modest earners rely on features such as...