Labour has vowed to reverse Jeremy Hunt's decision to abolish the lifetime pensions allowance as Rachel Reeves described the tax break for high earners as the "wrong priority, at the wrong time, for the wrong people". 

Mr Hunt said the move to get rid of the £1.07 million allowance would "incentivise our most experienced and productive workers to stay in work for longer" and also "simplify our tax system, taking thousands of people out of the complexity of pension tax".

But Labour said the reforms will "result in the top one per cent of pension savers getting a massive tax break for their retirement" as the party promised to undo the decision if it wins power at the next election. 

Ms Reeves said: "The Budget was a chance for the Government to unlock Britain’s promise and potential. But the only surprise was a one billion pound pensions bung for the one per cent, a move that will widen the cost of living chasm.

"At a time when families across the country face rising bills, higher costs and frozen wages, this gilded giveaway is the wrong priority, at the wrong time, for the wrong people.

"That’s why a Labour government will reverse this move. We urge the Chancellor and the Conservative government to think again too."

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