Reform will focus on raising the threshold rather than removing some of the complex quirks of the pension system.
IFS director Paul Johnson has criticized a ‘ridiculous’ tapering rule that applies to people earning over £240,000. .
Mr Johnson said: But removing it makes the policy much more expensive. ”
Hunt’s budget plan will be implemented against the backdrop of new expectations that the financial industry will be in crisis and interest rates will stop rising.
The Bank of England is now expected to raise interest rates once more to 4.25% from the current 4%.
This comes after US President Joe Biden failed to calm financial markets following the failure of Silicon Valley Bank (SVB). Rishi Sunak also said people in the UK need not worry about his SVB collapse developing into a wider banking crisis.