Rachel Reeves is facing a scramble to balance the books in the Budget after seemingly abandoning a ‘mad’ plan to slash pension contribution reliefs.
The Chancellor has warned she needs to raise up to £16billion in the fiscal package on October 30, blaming the Tories for leaving a ‘black hole’.
Rumours had been swirling that Ms Reeves would cut reliefs for those earning above the higher rate.
But that prospect has apparently been dropped amid fears that it would cause chaos in the civil service and NHS – where pensions are far more generous.
Meanwhile, there are claims that the government might not be able to bring in as much as hoped from key Labour manifesto policies.
That could heap pressure on Ms Reeves to be tougher on inheritance taxes, including drawdown of pension pots, as she tries to shore up her coffers.
Rachel Reeves (pictured with Keir Starmer last week) is facing a scramble to balance the books in the Budget after seemingly abandoning a ‘mad’ plan to slash…