Tuesday, April 03, 2007

Pensions Grab, Brown just does not get it!

Gordon Brown is back in the country after being mysteriously in Afghanistan when the news of the great Pensions smash and grab broke on Friday night, and according to this article carried by the BBC has defended the great pensions smash and grab at the launch of labours local election campaign.

Specifically he said:
"It was the right decision for investment. It was the right investment for our pensions and the right decision for our economy"

He added that he would "take the same decision again", adding: "I've attempted to take the right decisions, no matter how inconvenient and difficult they might be."

Mr Brown said the decisions he took had ensured the long-term strength of the economy which benefited everyone, including pensioners.
The only problem is that pensioners probably wont feel all that warm and glowy about it. In short this sort of comment will go down like a bucket of cold sick.

There is no great evidence that the change in the tax system has lead to greater investments in companies than would otherwise have been the case and whilst other factors have caused problems to pension funds other than the tax on them, rather than looking to help, Gordon Brown looked to put the boot in and raid a pot because he thought no one would notice.

The rationale for the tax benefits for pensions is simple. People providing for themselves in old age means the government does not have to. It is now no longer worthwhile for many people to have a pension at all because under the new tax and means tested benefit system any pension you get unless fairly large will be the same as someone who had not saved at all. Whether we like it or not people who will not benefit by saving will end up not saving at all,

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