Chancellor Rachel Reeves promises to 'fix the foundations and deliver change' ahead of autumn budget.
Labour has been accused of plotting a series of tax raids on private enterprise to shower the public sector with cash.
A raid on private sector pensions looks set to be a major part of the Budget alongside changes to capital gains tax, inheritance tax and fuel duty as well as further freezes on income tax thresholds. Experts warn that imposing national insurance on pension contributions made by employers will lower wages and the amount firms pay into retirement pots for staff and could even cost jobs.
'In their short-term desperation to rake in money for union-dominated public services, Labour are going to attack the private sector and undermine the pensions system in a way which will do untold damage.' Yesterday it emerged that Gordon Brown, who conducted a notorious raid on private sector pensions during his time as Chancellor, has been advising Ms Reeves on the Budget.
Critics argue the pensions raid would be a 'straightforward breach' of Labour's manifesto pledge not to increase taxes 'on working people' as it ruled out hikes on national insurance, income tax and VAT. 'On top of that to start increasing taxes again is going to be very damaging to our economy and to our businesses.'How are you going to generate growth when you are stifling business with more taxes?
But in 2021, when in Opposition, Ms Reeves herself branded national insurance a 'jobs tax' that 'takes money out of people's pockets'.Baroness Altmann, Tory pension minister under David Cameron, said such a move would be 'patently unfair on private sector employees' and would 'further embed inequalities in pension provision for the UK workforce'.
Read More Rachel Reeves considers a £17BILLION national insurance hit to employer pension contributions Sir Steve Webb, a partner at pension consultants LCP who was Liberal Democrat pensions minister in the Coalition, said: 'If you start taxing something you are going to get less of it.
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