Tories warn of major Budget backlash if Hammond tries to push through 'perverse' tax hikes for older workers to give handouts to younger voters

Philip Hammond has been warned he faces a massive Budget backlash if he tries to push through tax hikes for older workers to fund a giveaway for the younger generation.

The Chancellor has signalled his intention to use next month's financial package to tackle mounting concerns about the prospects for young people.

Proposals on the table include slashing tax relief on pensions for older workers in order to pay for lower taxes for the young.

There are also whispers about a major move on writing off student debt - an idea thought to have the support of Brexit Secretary David Davis, who previously campaigned against rises to tuition fees.

But senior Conservative backbencher Jacob Rees-Mogg branded the tax 'rebalancing' concept 'perverse' and 'unfair'. He told MailOnline the measures had not been 'thought through' and would struggle to get through parliament.
Philip Hammond is looking at the link between age and taxes to try and improve fairness between the generations, it has been reported

Philip Hammond is looking at the link between age and taxes to try and improve fairness between the generations, it has been reported
Those aged under 25 could be offered a lower rate to offset the difficulties of gaining access to the housing market.

Senior Tory MPs such as Nadhim Zahawi have recently floated the idea of going further, slashing the basic rate of income tax to 10 per cent - saving them around £2.8billion a year.

Mr Zahawi told MailOnline he was still 'pushing hard' on the concept, and the Treasury was in 'listening mode'.

Former minister Lord WIlletts said he would support 'anything' that rebalanced the tax system in favour of young people.

'If you are 30 now, you are probably earning less than someone who was aged 30 10 or 15 years ago. So anything that rebalances and helps younger people, I would be in favour of,' he told BBC Radio 4's Today programme.

Asked whether such a move would upset the older generation, the Tory peer replied: 'A lot of older people themselves worry about the financial situation of their children and grandchildren.

'And if people have got higher incomes, perhaps they would like to see some help instead for their kids and grandkids.'