Overview
- Financial Times reports the decision to forgo an income tax rate hike was sent to the OBR on Wednesday, though the Treasury declined to comment on pre‑Budget speculation.
- The Times says a proposed levy on limited liability partnerships has been abandoned after modelling suggested it would ultimately reduce revenues.
- Officials are reported to be weighing narrower measures such as a cap of about £2,000 on pension salary‑sacrifice NI relief that could raise roughly £2bn a year.
- Reeves is also reported to be preparing limits on high‑end purchases under the Cycle to Work scheme after costs rose to an estimated £130m in 2024‑25.
- Pension and cycling industry groups warn that cutting salary‑sacrifice relief could reduce retirement saving and raise employer costs, while tightening Cycle to Work could hinder green commuting.