The Conservatives have accused the Chancellor of a ‘cruel stealth raid’ on OAPs

Helen Whately (Image: Getty)

The Conservatives warned before the election, and we are warning again now – Rachel Reeves is coming for your pension. It all stems from a Chancellor whose economic plan, if there ever was one, is in pieces.

She has smashed the public finances and left herself scrambling for revenue wherever she can find it. Her last Budget was littered with stealth taxes – pay-per-mile, taxi tax, pension contributions. Labour don’t have the backbone take the bold action needed to embolden our economy, she could start by tackling the ballooning benefits bill, instead, Labour simply hunts for sneaky ways to take more of your money.

Reeves should be looking for growth, cutting taxes, freeing the economy, but no, she has her sights on pensioners.

And that brings us to the latest example. Rachel Reeves has frozen the income tax threshold for years to come. The Conservatives are voting against that freeze because we know it drags more people into paying tax without anyone ever announcing a new tax rise. That is the stealth tax at the heart of Labour’s plans.

During the General Election campaign, Labour repeatedly refused to rule out taxing the State Pension. Now the Office for Budget Responsibility’s forecasts show that is exactly where Labour’s policies lead.

The State Pension rises each year, but the tax threshold is frozen. That means the gap between the two is closing. If the threshold stays fixed while pensions keep rising, it is only a matter of time before more pensioners are pulled into paying income tax.

Even Reeves herself knows there is a problem. After the Budget she tried to reassure pensioners in an interview with Martin Lewis, claiming those living only on the State Pension would not pay tax during this Parliament.

This pattern should sound familiar. The very first thing Labour did after taking office was attack pensioners by scrapping Winter Fuel Payments for millions of older people, before scrambling into a humiliating U-turn.

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Pensioners face another squeeze. Rachel Reeves froze the tax threshold and set the trap. As pensions rise, more older people will be dragged into paying tax through the back door.

That is the reality of Labour’s cruel Retirement Tax. That is why the Conservative Party are launching a campaign to stop Labour’s Retirement Tax and stand up for pensioners who deserve security and dignity in retirement.