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The Labour Party could launch a Budget tax raid on salary sacrifice schemes to raise £3bn-£4bn. The plan would reduce the amount of money people can sacrifice from their pay cheques to put in their pension pots without paying national insurance.

The government had previously floated setting the threshold at which people could sacrifice their salary while still obtaining the tax benefit at £2,000 a year, which people close to the plans said would raise around £2bn a year.

A person briefed on the chancellor’s thinking said Labour Party Chancellor Reeves had been “clear she wants to ensure the tax system is fair and sustainable, while protecting ordinary workers and supporting pension savings”, adding that salary sacrifice is not available to all workers such as those near the

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