Shadow Secretary of State for Work and Pensions, Helen Whately, has called on the government to rule out pension tax increases at the upcoming Budget.

Addressing the Pensions UK Annual Conference, Whately described the direction of travel ahead of the Budget as “ominous”, pointing to recent pensions-related changes to salary sacrifice, inheritance tax, and the triple lock.

"The Budget will be an important test of Andy Burnham’s premiership,” she continued.

“His government faces pressure on the public finances; we all understand that. But pension savers should not be asked to plug the gap.”

Whately highlighted that people plan for retirement over decades, so when governments “mess around” with incentives in an effort to balance the books, it undermined the pension system over the long term.

“Think about someone approaching retirement,” she said. “They hear a rumour about a tax change. They wonder whether to take money out sooner than they planned, whether to stop contributing, whether to retire now before the rules change again.

“The change may never happen, but the decision they make in anticipation can affect the rest of their life.”

Whately warned that speculation around potential pension changes can do damage to people’s retirement savings before the Chancellor delivers their speech on Budget day.

“Let me be clear about our position,” she continued. “We oppose further tax increases on pension savings or pension schemes, and I’m calling on the government to rule them out now.

“Not on Budget day after weeks of speculation, but right now. Confidence takes years to build, but so little time to lose.”

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