Pension tax relief cut comes under fire

Government plans to reinstate a cut in pensions tax relief have been criticised by former pensions minister and current head of policy at Royal London Steve Webb. Treasury Minister Mel Stride said the March Budget plan to cut the Money Purchase Annual Allowance from £10,000 to £4,000 a year would be reintroduced after it was dropped from the Finance Bill in the pre-election legislative wash-up.

However, the government did say at the time that these plans would be reintroduced, and a written statement by Ms Stride said: "The Government confirms that intention. It expects to introduce a Finance Bill as soon as possible after the summer recess containing the withdrawn provisions."

Describing the situation as "unacceptable", Mr Webb said the measure is "unnecessary" and also unfair to be done retrospectively in a way that hits savers with tax backdated to April, especially as savers did not know who was going to win the election. He also labelled the government "arrogant" in assuming the DUP will necessarily help vote the bill through.