Taxes on older workers could be hiked in the Budget to pay for tax breaks for younger people, it emerged last night.
Philip Hammond is looking at the link between age and taxes to try and improve fairness between the generations, The Telegraph reported.
It could mean tax relief on pensions for older workers could be cut in order to pay for lower taxes for the young.
Philip Hammond is looking at the link between age and taxes to try and improve fairness between the generations, it has been reported
In particular, officials are said to be examining cuts to National Insurance contributions for young people.
But the idea could risk alienating older voters – who tend to vote Tory.
The Chancellor is beginning discussions with Tory MPs over plans for the Budget, as he attempts to avoid a repeat of the National Insurance u-turn in March.
As a result, ideas under consideration are circulating in Westminster.
The age over which voters on average chose the Conservatives at the last election was 47, according to estimates.
That has prompted ministers to consider ways to help improve the lot of young people, who find it harder to get on the housing ladder than their parents and grandparents did.
The Chancellor is beginning discussions with Tory MPs over plans for the Budget
George Freeman, the head of the Prime Minister’s policy board, last night called for a ‘new deal for the next generation’.
‘We need to look at a new model of saving for a generation that will not benefit from the post-war model of National Insurance.’
Blame for the Tories’ disastrous election result has been placed on the decision to include a radical social care policy in the manifesto, which was quickly dubbed a ‘dementia tax’ by Labour.