Tax threat to older workers ‘in Budget giveaway to the young’

TAXES on older workers could be increased 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 to improve fairness between the generations, The Daily Telegraph reported.

It could mean that tax relief on pensions for older workers could be cut to pay for lower taxes for the young.

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 – to be held on November 22 – as he attempts to avoid another U-turn over National Insurance. In March Mr Hammond increased National Insurance for some selfemployed workers then changed his mind. As a result, further consultation is going on in Westminster. At the last election, the average age above which voters chose the Conservatives 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.

George Freeman, of the Prime Minister’s policy board, last night called for a ‘new deal for the next generation’. He added: ‘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.’