Pension tax relief for older wage earners could be slashed as part of a “tax on age” Budget being lined up by Chancellor Philip Hammond.
Sources tell the Telegraph that the Chancellor is mulling ways to promote “intergenerational fairness” in the package to be outlined next month, including cutting national insurance contributions for workers in their 20s and 30s by making savings on pension tax relief.
Hammond is understood to be running ideas passed his own MPs after facing criticism over the so-called “dementia tax” and having to scrap a planned rise in NICs for the self-employed earlier this year.
A source told the Telegraph that Hammond wanted to be “bold” in a plan to “restack the deck for the next generation”.
Another source said: “It is more of a question of rebalancing than just spending money. He is looking at things around regulation – at no cost to the exchequer – or rebalancing.
“There is a recognition of a need to make an offer to appeal to younger voters in some way. That has been falsely focused on students and student finances. It is a much broader thing.”
Planning restrictions on greenfield sites are also set to be relaxed in a house building push, as developers attend a summit on house building in Downing Street tomorrow.