Reeves could raise £10bn a year by reducing pension tax relief, report says

Rachel Reeves has indicated the 30 October budget is likely to include tax rises. Photograph: WPA/Getty Images

Rachel Reeves could raise at least £10bn a year through a radical shake-up of pensions that would make tax relief less generous to better-off earners, a leading left-of-centre thinktank has said.

The report by the Fabian Society says tax breaks for pensions have become markedly more expensive for the government and its proposed changes would fill half the £22bn shortfall the chancellor has identified in the public finances.