George Osborne has scrapped proposals to shake up pension tax relief in this month’s Budget in an attempt to avoid a major backlash from Tory MPs and the pensions industry. The retreat removed a big political risk for Mr Osborne at a time when the government is anxious to avoid any upset to its campaign to remain in the EU ahead of the Brexit referendum in June. The chancellor had been expected to use his Budget on March 16 to update the House of Commons on radical plans to reform the system. But he had been under mounting pressure from Conservative MPs concerned about the financial impact on their constituents.