Rachel Reeves is reportedly set to drop plans for a tax raid on pensions over fears it could unfairly affect public sector workers. The Chancellor has been warned that a scheme to reduce the 40 per cent tax relief on higher earners could disproportionately impact teachers and nurses,

Rachel Reeves has reportedly dropped plans for a pension tax raid, amid Treasury concerns that it would penalise up to a million public sector workers. Senior officials from the department told the Chancellor that cutting the 40 per cent tax relief on higher earners would have a disproportionate impact on public sector workers on modest incomes.

Labour’s plan to introduce education tax has been slated by Tory MP Damien Hinds. From January 1, the government plan to impose VAT on private schools but the policy may be delayed due to warnings from unions, experts and school leaders.

Chancellor Rachel Reeves is understood to have been told by senior Treasury officials that reducing the level of tax relief on higher earners would disproportionally hit those on modest incomes who wo

Exchequer secretary James Murray MP confirmed this at a Labour conference fringe event hosted by the British Retail Consortium, saying: “It’s within the current envelope. It’s all about raising the same amount of money overall, that’s the commitment.”

Rachel Reeves could impose tax hikes of up to £130 billion in a bombshell budget, new analysis has warned. The Chancellor's statement on October 30 threatens to be "a real horrorshow for taxpayers" as Labour seizes cash to fund pay rises for public sector workers and projects including a state-owned energy company.