Ministers are preparing a climbdown over controversial
plans to force hundreds of thousands of social housing tenants to pay market
rents once they earn more than £30,000 a year – as they “clear the decks” of
controversial policies ahead of the EU referendum. George Osborne has abandoned
a package of radical pension reforms, including cuts to tax relief for higher
earners, for fear of upsetting voters and causing a political distraction. The
Observer now understands that ministers are also planning to modify hugely
contentious elements of the housing reforms the chancellor announced last
summer. A retreat on the “pay to stay” policy – which is under attack from a
cross-party group in the House of Lords – will be seen as part of an attempt to
avoid issues that could create negative headlines before the 23 June vote. Read
more on the Observer website.
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