George Osborne’s pension reforms will backfire and end up costing the taxpayer billions of pounds more every year as people stop saving for their retirement, the official Treasury watchdog has warned.
The Telegraph reports that the Office for Budget Responsibility said the removal of tax relief on pensions for higher earners – billed as a move to save money – will ultimately end up costing the Exchequer £5 billion a year.
The watchdog warned that higher earners will move their money to tax efficient investments and may even drive up property prices as a result of the ill-thought through policy.
Meanwhile, The Times reports that younger workers could be in line for a boost to their pensions at the expense of older employees under plans being considered by the Treasury.
Tax breaks to encourage people to save for their old age will be reshaped to favour the millennial generation crippled by student debts and runaway house prices, it is understood.
Brexit
Whitehall officials believe the UK may need to make big payments to the EU to secure preferential trading terms after Brexit, according to BBC Newsnight.
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