Labour Party U-Turns on Plans for Tax-Free Pension Limit

  • Reeves had pledged to reverse Tory abolition of lifetime limit
  • All major UK parties to set out election manifestos this week

Keir Starmer speaks during an event at Stifford Clays in Grays, Essex County, UK, on June 9.

Photographer: John Keeble/Getty Images
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Britain’s Labour opposition has scrapped plans to reintroduce a tax-free limit on pension saving as the five main political parties prepare to publish their manifestos this week amid questions about how they’ll pay for their campaign pledges.

Labour had previously promised to reverse Chancellor Jeremy Hunt’s decision to abolish the lifetime allowance in last year’s March budget, with his opposite number Rachel Reeves declaring it “the wrong priority, at the wrong time for the wrong people.”