{"id":27289,"date":"2024-10-10T10:14:59","date_gmt":"2024-10-10T09:14:59","guid":{"rendered":"https:\/\/smh.group\/?p=27289"},"modified":"2024-10-10T15:18:12","modified_gmt":"2024-10-10T14:18:12","slug":"could-a-pension-tax-reform-help-fill-the-22-billion-blackhole","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/could-a-pension-tax-reform-help-fill-the-22-billion-blackhole\/","title":{"rendered":"Could a pension tax reform help fill the \u00a322 billion blackhole?"},"content":{"rendered":"

Facing a \u00a322 billion deficit, Rachel Reeves is receiving advice from numerous groups.<\/strong><\/p>\n

The Fabian Society<\/a> published a report on taxation on August Bank Holiday Monday. While their main audience is in Scotland, which has its summer bank holiday at the start of August rather than at the end, the timing was unusual. Nevertheless, that was the date chosen by the Fabian Society to release Expensive and Unequal<\/em>. The case for reforming pension tax <\/em>(2024).<\/em><\/p>\n

The Fabian Society is one of the Labour party\u2019s original founders and remains an affiliate to this day. Like several other left-leaning think tanks, post-election what it says has suddenly started to attract more attention. This is especially true on the issue of tax ahead of the Budget on 30 October.<\/p>\n

The Society\u2019s pension proposals are wide-ranging, but all of them have appeared before in one form or another. Taken together, the Society suggests that they could raise \u00a310 billion a year. To put that in context, the controversial decision to means-test Winter Fuel Payments will save about \u00a31.5 billion a year in 2025\/26.<\/p>\n

The most significant element of the proposals is the introduction of a flat rate tax credit to replace income tax relief on pension contributions. This idea was once allegedly considered by George Osborne, the former Conservative chancellor. For example:<\/p>\n