Hammond set to raid pension tax relief funds to pay for NHS spending

Mail Online | 10/9/2018 | Kate Ferguson, Political Correspondent For Mailonline
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Philip Hammond looks set to cut the tax relief savers get on their pension pots to bankroll the £20billion spending spree on the NHS, it emerged today.

The Chancellor is desperately trying to find areas where he can save money to pay for Theresa May's big-ticket funding pledge for health.

Pressure - Spending - Taps - Areas - Prime

He is also facing pressure to turn the spending taps on in other areas after the Prime Minister promised that an end to austerity is in sight.

Mr Hammond is expected to announce that he will cut the pension tax relief - which costs the Treasury around £39billion a year - when he unveils his Budget later this month.

Tax - Break - Savers - Pension - Pot

This is a tax break given to savers - so those who pay into a pension pot are given relief at their highest rate of income tax.

Ministers are looking at scaling back this benefit by either cutting the tax-free annual allowance, or by lowering the rate of relief, according to The Daily Telegraph.

Pension - Experts - Savers - Thing - Future

But pension experts warned this would punish savers who are doing the right thing by planning for the future and putting money away.

Mr Hammond last week strongly hinted that he is set to raise taxes in the upcoming Budget.

Tory - Party - Conference - Birmingham - Prime

Speaking at the Tory party conference in Birmingham, he said: 'The Prime Minister was always very clear, very honest and very open with people: if we want a well-funded NHS fit for the future we will have to find a little more tax to fund it in the future.

'I shall say more at the time of the Budget.'

Pensions - Experts - Chancellor - Move - Savers

But pensions experts warned the Chancellor that the move would punish savers who are just doing the right thing and being careful with their money.

Britons have already seen their savings barely grow thanks to many years of extremely low interest rates.

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Steve Webb, the former...
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