Shadow chancellor Ed Balls has announced that Labour is set to restrict tax relief on pensions for those earning over £150,000 a year in order to reduce current unemployment levels.

Around 300,000 Britons could be affected by this new proposition, as it would mean that the wealthy would get a 20 per cent tax relief on savings, compared to today’s figure of 50 per cent tax relief and 45 per cent from April. Labour hopes that the change will raise about £1bn.

Writing for the PoliticsHome.com website, Balls stated that “£1bn a year would fund a compulsory jobs guarantee initially to all adults out of work for 24 months or more – which would seek to reduce to 18 or 12 months over time”.

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