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Jeremy Hunt is expected to increase the amount workers can put in their pension savings before being taxed – but not everyone will be toasting the announcement with bubbly.
The chancellor is reportedly looking at increasing the lifetime allowance (LTA) on tax-free pensions in today’s Budget as part of a bid to encourage older workers back into the jobs market.
However, he is also poised to make the ‘biggest wine tax raid in 50 years’ – alongside an inflation-linked rise in alcohol duty from August 1 – which could see the price of a bottle rising by 45p.
Under a new system for taxing alcohol by strength, around 90 per cent of still wines will see a rise in the amount they are taxed, The Telegraph reports. Critics warned the move would deal a ‘crippling blow’ to the industry and consumers.
Meanwhile, the level at which Mr Hunt will set the LTA – currently £1.07million – could rise to £1.8million, with experts saying it is in need of reform.
But former pensions minister Baroness Ros Altmann said his move would not solve the health issues keeping over-50s away from work.
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