Instead of making life harder for pensioners, Reeves should be cutting spending, bringing down the welfare bill and getting Britain working again'

LABOUR will be punished at the ballot box if Rachel Reeves betrays pensioners with stealth tax hikes in today's Budget.

- MARTYN BROWN Political Editor

The Chancellor is tipped to extend the freeze on income tax thresholds by another two years.

It would leave pensioners £800 a year worse off and drag half-a-million more OAPs into the tax net.

With the tax-free personal allowance frozen at £12,570 until 2029/30, annual increases in the state pension would put more people over the limit, meaning they would have to pay the levy on their meagre retirement income.

The plan would result in 9.3 million pensioners - more than threequarters of all OAPs - paying tax, up from 8.7 million now.

Extending the freeze would break Labour's general election manifesto pledge not to raise taxes for working people, and would be even more unpopular than last year's winter fuel payments axe.

Ms Reeves is also expected to unveil a pensions raid worth up to £4billion by clamping down on popular salary-sacrifice schemes.

Tory leader Kemi Badenoch said: "Last year Rachel Reeves broke her pre-election promise and snatched away the winter fuel allowance. This year, the Chancellor looks set to drag the state pension into income tax for the first time ever, and she's coming after pensioners' savings.

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"The Conservatives will always stand up for those who have worked hard all their lives and those who do the right thing by saving for the future.

"Instead of making life harder for pensioners, Reeves should be cutting government spending, bringing down the welfare bill and getting Britain working again."