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 had been planning to cut the 40 percent level of tax relief that savers receive on their pension contributions to those earning £50,000 a year

LABOUR’s pension tax raid is set the ditched after warnings it would hammer up to a million teachers, nurses, and public sector workers. Chancellor Rachel Reeves had planned to

Chancellor Rachel Reeves is also said to be reassessing its tax reforms for non-domiciled individuals, following warnings that the changes could lead to a “wealth exodus” and ultimately reduce revenue. A "non-dom" refers to a UK resident whose permanent home, or tax domicile, is considered to be outside the UK.

Rachel Reeves was expected to reduce the current 40 per cent level of tax relief on higher earners in the Budget, but has changed direction

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

Ms Reeves was planning on performing a pensions tax raid in the Budget, but it appears fear of upsetting the public sector has poured cold water on the plans.

The Chancellor had planned to raise funds by reducing tax relief on those earning £50,000 or more per year, but officials said the move would hit workers who have just been handed a pay rise.