Great news from the Chancellor that he will not change the way pension savings are currently taxed - so continuing the incentive for people to save into their pension.
This confirmation ahead of the Budget can now end speculation and quiet the frayed nerves of many pension savers, employers, advisers and the whole pensions industry.
Currently, tax relief is available on savings made into a qualifying pension, subject to pension tax relief allowance limits. This means that for a basic rate tax payer saving £50 a month into a pension, an additional £12.50 of tax relief will be added, meaning a total of £62.50 will be added into their pension each month.
This is a great incentive for everyone saving into a pension, and it is a great relief to see that this will be continued.
George Osborne has abandoned an overhaul of pension tax after a revolt from Tory MPs risked derailing his leadership hopes.