Budget whispers

Chancellor Philip Hammond is allegedly considering cutting higher rate pension tax relief in a bid to find extra money for the NHS. 

There are reports that an unnamed senior government source has indicated that Hammond had eyed the £38 billion paid out every year in the form of pension tax relief as 'one of the last remaining pots of gold we can raid'. However, the source added Hammond was likely to only target people who can afford to put tens of thousands of pounds into their schemes each year.

This could head off the possible rebellion that stopped Hammond's predecessor George Osborne pushing ahead with changes to tax relief in 2016. There have been no further musings or further details on how any possible cut to tax relief would work, but we know that Hammond will need to find £20 billion in his November Budget to fund extra NHS spending pledges made by Prime Minister Theresa May earlier this year.

He has been given a boost of around £10 billion in the form of an unexpected surplus, but still needs to make cuts or raise taxes in other areas to make up the shortfall.