Budget 2013: Osborne urged to axe salary sacrifice to save 'billions'

Centre for Policy Studies fellow Michael Johnson believes the Treasury should at least make public how much the scheme costs it in lost revenue. "This is part of the cost of incentivising pension saving, but no one has quantified it in terms of lost income tax and National Insurance contributions," he said. Johnson said it was highly unlikely there would be significant changes to pensions announced in today's budget but said salary sacrifice was an area George Osborne should target. "It is the most fundamental tax arbitrage," he said. "No one has sat down and said ‘what is this goi...