Liberal Democrat leader Menzies Campbell has been accused of plotting a £4bn tax raid pensions after he proposed cutting tax relief on the savings of higher earners.

Campbell said the party’s tax commission was looking at axing the existing 40 per cent top-rate tax relief on pension contributions.Instead, taxpayers would only be able to claim back the basic rate of 22 per cent on pension payments, a move the party estimates would save the Treasury £4bn.

Campbell said the money would be used to fund tax cuts for low and middle-income families.