Raiding Britain's pensions will discourage workers from saving and leave them reliant on the state, Aviva boss warns Reeves
Aviva boss Amanda Blanc has sounded the alarm over a possible raid by Labour on pension savers – urging the Government to beware of the long-term consequences.
Chancellor Rachel Reeves has warned she faces tough choices in her first Budget in October after identifying a £22billion black hole in public finances that she claims the Tories left behind.
That has prompted speculation of tax raids, including cutting pension tax relief for higher-rate earners.
But Blanc, speaking as Aviva published half-year results, warned that Reeves should think again before doing so.
![Hands off: Aviva boss Amanda Blanc warned that Chancellor Rachel Reeves should think again before raiding workers' pensions](https://i.dailymail.co.uk/1s/2024/08/14/21/88537165-13744109-Hands_off_Aviva_boss_Amanda_Blanc_warned_that_Chancellor_Rachel_-m-2_1723668770067.jpg)
Hands off: Aviva boss Amanda Blanc warned that Chancellor Rachel Reeves should think again before raiding workers' pensions
She stressed the importance of encouraging workers to save into pensions – of which Aviva is a major provider – so they are less reliant on the State.
Boosting pension savings will also mean more money for investment in the UK, she added.
Blanc said: ‘On pensions tax relief I think we would just caution that if you really want people to save for the long-term – pensions are a long-term game, they are not something that you do something with today and don’t have consequences in five, ten, 15, 20 years’ time.
‘All we would say is that the Government thinks about the long-term impact.’
A change to the tax relief system for those putting money into pension pots is an option being drawn up by officials.
Workers receive relief at 20 per cent for basic-rate payers and 40 per cent or 45 per cent for those on higher rates. Speculation suggests that Reeves could limit relief for those in the 40 per cent and 45 per cent brackets.
Analysis by AJ Bell has suggested that it could mean millions of higher-rate savers having to save for an extra four years to build pension pots to the same level.
It is one of a number of moves that could be on the cards.
Reeves has also hinted that she could hike capital gains tax. Another option may be to raise fuel duty. Blanc was more positive however about the broader outlook for the UK.
‘There are many reasons to be positive, including greater economic stability and political certainty,’ she said.
‘We have been all over the world speaking to investors and the feedback is that they are way more interested in the UK now than two years ago.
‘We have got to be optimistic about the future of the UK.’
Blanc said recent riots had not damaged that sentiment. ‘The fundamentals are actually very strong,’ she said.
Aviva reported a 14 per cent rise in operating profits to £875million, beating analysts’ expectations of £830million.
Blanc said it would launch a long-term asset fund for unlisted growth companies in the second half of this year.
Analysts at broker Jefferies said: ‘Aviva continues to demonstrate strong delivery versus its targets.’ Shares climbed 0.7 per cent, or 3.2p, to 491.8p and are up 13 per cent this year.
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