British finance minister has decided to drop plans for a pensions overhaul which had run into opposition by his own Conservative Party members who are split over the UK’s EU membership.
George Osborne has been considering reforms of the pension system which could raise revenues for his push to turn Britain’s budget deficit into a surplus by the end of the decade.
The reform options included introducing a flat rate of tax relief on pension contributions, which would hit wealthier savers, or the more radical idea of taxing pension contributions and ending the tax-free lump sums that pensioners enjoy now, Reuters reported.
The finance ministry has not yet commented on the report.