Exposed: Labour ignored crucial warnings over pensions raid
Newly released documents dating from 1997 expose the dangerous arrogance with which Ed Balls and other Labour Ministers ignored official warnings that their plans could cut the income of millions of pensioners by up to a fifth.
The uncovered documents, obtained under the Freedom of Information Act, show how the Labour Government was warned that changes they were planning to the tax system for pension funds could result in a 20 per cent fall in share prices, with a massive knock-on effect on pensions. Labour Ministers ignored these warnings and proceeded with the changes.
The decision to abolish dividend tax credits has been estimated to have cost British pensioners up to £150 billion, and was described by one Pension Fund expert as the ‘biggest attack on pension provision since the war’.
Commenting, Conservative Party Co-Chairman Sayeeda Warsi said:
“Labour’s pensions raid turned the British pensions system from one of the best in the world into one which is struggling to cope, leaving 2 million pensioners living in poverty.
“As Gordon Brown’s key adviser in the Treasury in 1997, Ed Balls should come clean about his involvement in Labour’s unfair pensions raid. How can he claim to lead the Labour Party forward when he can’t own up to his past mistakes?”
(Source: CCHQ press release republished on Conservative Home, which gives the full text of the press release including "Notes to editors" which verify the details here.)
The uncovered documents, obtained under the Freedom of Information Act, show how the Labour Government was warned that changes they were planning to the tax system for pension funds could result in a 20 per cent fall in share prices, with a massive knock-on effect on pensions. Labour Ministers ignored these warnings and proceeded with the changes.
The decision to abolish dividend tax credits has been estimated to have cost British pensioners up to £150 billion, and was described by one Pension Fund expert as the ‘biggest attack on pension provision since the war’.
Commenting, Conservative Party Co-Chairman Sayeeda Warsi said:
“Labour’s pensions raid turned the British pensions system from one of the best in the world into one which is struggling to cope, leaving 2 million pensioners living in poverty.
“As Gordon Brown’s key adviser in the Treasury in 1997, Ed Balls should come clean about his involvement in Labour’s unfair pensions raid. How can he claim to lead the Labour Party forward when he can’t own up to his past mistakes?”
(Source: CCHQ press release republished on Conservative Home, which gives the full text of the press release including "Notes to editors" which verify the details here.)
Comments
In this context it is not entirely surprising that the necessary £6 billion a year to reverse this tax rise has not yet been found. The top priority for tax cuts was supporting the recovery by reducing Brown's taxes on jobs, exactly as we promised during the election campaign.
Brown made the original raid on pensions at a time when public finances were in infinately better condition.
I presume there is a typo in the question about which index we are linking pensions to. The plan is that the earnings rule will be restored at the time earnings growth goes back ahead of inflation (which at the moment it isn't) but not before.
Singapore is better off than us - FACT
Most of the countries to whom we send aid have GDP per head vastly lower than that in the UK.
There is no money at the moment for it to be returned, This is because Gordon spent it all. Although it would be fair to say Wasted most of it.
Whilst I have no rose tinted glasses to view the current government, I can only be grateful that the labour party is no longer in government.
You may not like the Conservatives or Lib dems Tim, but for the country as a whole, another Labour term would have been disastrous.
FACT - I don't like any of the LibLabCon. END OF FACT.
They are no discernable differences between them. They have for the last half century run this country into the ground, whilst exercisng considerable largesse when it comes to their own well being, and no I don't support the BNP, UKIP or any other political party. If another term of Gordon Brown would have been disastrous then I know that the next five years will be disastrous.