Philip Hammond will face major public opposition if he launches a tax raid on pensions savings in next week’s Budget, an exclusive poll for the Evening Standard reveals today.
An overwhelming margin of Britons are against a 20 per cent tax on contributions to pension schemes, which was found to be by far the most unpopular money-raising idea that has been mooted ahead of the Chancellor’s Budget on Monday.
Some 71 per cent were against the idea, with just 16 per cent in favour.
Mr Hammond recently branded the cost of tax relief on pensions as “eye-wateringly expensive”, stoking expectations of a Budget raid to help pay for the Government’s promised cash injection of £20 billion a year for the NHS.
Pollsters Ipsos MORI found strong enthusiasm for slapping 20 per cent VAT on private school fees, with 54 per cent for and 26 per cent opposed.
There is also support for cancelling the Conservative manifesto promise to increase the higher earnings threshold to £50,000, a move that would cost higher earners up to £750 a year. Some 46 per cent supported the idea, while 36 per cent were opposed.
Two thirds of voters say spending on public services should rise, even if it means tax rises or more overall government spending, but only a quarter think the Government will do it. Just eight per cent think Mr Hammond should cut spending on services again, but a third think he will do it anyway.
Gideon Skinner, head of political research at Ipsos MORI, said: “Public opinion is turning against austerity. But the challenge facing the Chancellor is that few believe he really will increase spending, and at a time of economic pessimism, some options like taxing pension savings are not popular.
“The public is worried about the future of public services, and could be more accepting of some tax rises if they believe the money will be used to fund key public services like the NHS.”
Ipsos MORI interviewed 1,044 adults across Britain by phone from October 19 to 22. Data are weighted. Details at www.ipsos-mori.com
