Any potential clampdown on salary sacrifice or pensions tax relief in next week’s Budget would risk damaging public confidence in the pensions system and undermining economic growth, organisations representing the pensions industry and businesses are warning.

Pensions UK and the Federation of Small Businesses (FSB) have sent a joint letter to Chancellor Rachel Reeves , urging her not to curb salary sacrifice schemes or wider pensions tax relief.

Ahead of the November 26 Budget, the organisations warned speculation alone over potential changes is already eroding saver confidence, with increases in inquiries from savers and the potential for people making unnecessary early pension withdrawals.

It is also causing uncertainty for schemes and employers, they argued.

The letter to the Ch

See Full Page