The chief executive of insurer Aviva has called on Chancellor Andy Burnham to publicly rule out changes to pension tax rules in the next Budget, according to The Telegraph.
The request comes amid widespread speculation that the government is considering a raid on pension tax relief or limits on tax-free lump sums. The Telegraph reports that the Aviva boss wants Burnham to end the uncertainty by explicitly stating that pension tax breaks will not be altered.
The Financial Times also reports that Burnham is being urged to rule out changes to pension lump sums specifically. The Times adds that savings companies have separately appealed to Defence Secretary John Healey to stop the flow of pre-Budget policy leaks, which they say are destabilising the market.
Sky News has reported that some of the speculation around pension lump sums is based on myths, and has sought to clarify what the actual rules are. The reports suggest that savers are reacting to unconfirmed rumours, prompting industry leaders to demand clarity from the government.
The Independent notes that the Aviva chief has also asked the Chancellor to clamp down on pre-budget policy rumours more broadly, arguing that leaks and speculation are making it difficult for firms to advise customers and for savers to plan.
The next Budget is expected to be a key moment for pension policy, and the industry is watching closely for any signal from the Treasury. The pressure is now on Burnham to respond publicly before the speculation causes further disruption.
