Reeves opts to not raise tax on pension contributions in October budget

Rachel Reeves is considering making changes to capital gains tax and inheritance tax. Photograph: James McCauley/Rex/Shutterstock

Rachel Reeves has decided not to raise tax on pensions contributions in this month’s budget, after public sector unions warned that doing so would hurt their members.

The chancellor is understood to have decided against the move, which had been considered as one of a number of tax rises designed to repair the hole in the public finances.