Will Reeves remove pension tax reliefs for the wealthiest?

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This morning's Telegraph Business newsletter features these comments:


This is not the restriction on pension tax relief for the wealthiest that I propose in the Taxing Wealth Report, but it would be a start. I would simply eliminate all higher rate tax relief instead, raising £14.5 billion as a result. This proposal does, instead, raise a much smaller sum.

There are a number of issues to mention here.

First is the fact that this might even be under discussion.

Second is the fact that the move is so timid, and retains as a result a massive inherent bias towards the wealthy.

Third, there is the framing. This will apparently ‘cost' the wealthy money when it in fact removes a subsidy they have unjustifiably enjoyed.

Fourth, there is no link between this and the dominant issue of the day, which is the relief of child poverty. The Telegraph is howling at the possibility of reducing a massive state benefit for the wealthy, but not at the failure to provide benefits for children in need.

And sixth, let's see if this happens. I suspect the story is well sourced. A leak has happened. So, will Reeves do it? I doubt it. Time will tell.


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