More Bad News on Pensions
I become more and more convinced that the damage they are doing to the country's pension provision is on its own sufficient grounds why Britain absolutely cannot afford the re-election of the Labour government. It is bad enough that in his first budget Gordon Brown made pension funds liable to Advanced Corporation Tax, a form of double taxation which effectively takes £ 5 billion a year from pension funds. This was the first and worst "stealth tax" - Mr Brown hoped that people would not realise that a change to something with a remote-sounding name like "Advanced Corporation Tax" meant that their pensions were being taken away. Then Mr Brown introduced an atrociously complicated "pensions credit" system which destroys incentives to save because anyone who does invest for their future loses 40 pence of pensions credit for each pound of income he or she provides. Surprise surprise - as incentives to save have been destroyed by Gordon Brown, the level of ...