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The Chancellor has been warned that a clampdown on salary sacrifice or pensions tax relief in next week's Budget would risk damaging public confidence in the pensions system.

The deterrent comes from two organisations representing both the pensions industry and independent businesses.

Pensions UK and the Federation of Small Businesses (FSB) have sent a joint letter to Rachel Reeves , telling her that any decision to curb either incentive would strongly undermine economic growth.

Ahead of the November 26 announcement, the two groups 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.

They argued it is also causing un

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