Brown makes pension tax relief gaffe in TV debate
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The Labour Party has admitted that Prime Minister Gordon Brown made a gaffe when he said that he would cut pensions tax relief for those earning over £100,000 in the leaders’ debate yesterday.
The slip-up appeared to mark a change of policy for the Labour Party, which has only previously said it would cut pensions tax relief for those earning over £130,000 from April 2011, however a party spokeswoman has confirmed that Brown made a mistake and that the stated policy in the Labour manifesto still stands.
Many in the industry expressed concern after the initial Budget tax relief announcement last year that Labour would look to catch more earners with restrictions further down the line.
Speaking in the debate on the BBC yesterday, Brown said: “Our four-year deficit reduction plans include a rise in the top rate of tax above £100,000, taking away pension tax reliefs for those above £100,000 at a higher rate and a National Insurance rise.”
Hargreaves Landsdown head of pensions research Tom McPhail says: “You could take this one of two ways - you could argue it was an innocent mistake or he may have even mixed up the personal tax allowance limit.
“Or it may be that the gaffe happened because conversations have been taking place and it is on his mind. He does have form when it comes to pension tax hikes.”
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Readers' comments (37)
Anonymous | 30 Apr 2010 10:16 am
Another simple admission that they got it wrong, first it was £150,000, then £130,000, now £100,000, next month £70,000? Desperate electioneering. Good job we don't have to worry about about Labour staying in power
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Tony N | 30 Apr 2010 10:17 am
And yet his own enormous pension continues accumulating at a rate that would be well above the Lifetime Allowance were he in the public sector
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John Cowan | 30 Apr 2010 10:18 am
Robin Hood Robin Hood riding through the glen, Robin Hood Robin Hood with his band of men, robs from the succesful to support the lazyyyyy, Robin Hood Robin Hood Robin Hood!!!!!!!
When are going to lose this socialist claptrap that will drive the talent and skills abroad??
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Iain | 30 Apr 2010 10:20 am
One presumes this will not apply or reduce his own Final Salary pension.Or am I being a bit bigoted
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Paul | 30 Apr 2010 10:27 am
John C - you sound like a lovely person. If by talent you mean greedy folk unwilling to contribute to society at a reasonable rate then good riddance.
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Jacqueline B | 30 Apr 2010 10:34 am
I totally agree with these points, I have no faith in Brown due to the fact that everytime this issue is raised, the threshold for tax relief being cut for pensions continues to decrease. Soon, he'll be matching Clegg's proposal to target all those above basic tax rate!!!! Totally ridiculous and unjust!
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Lisa | 30 Apr 2010 11:00 am
Ive never commented on here before but I couldnt agree with you more John. Clegg will do exactly the same - he wants to make the high earner/hard workers poorer and leave the lazy to carry on sponging.
I know what we'll do - we'll take those people who are already keeping this country afloat and get them to pay even more in and leave those that are taking out to carry on doing just that !!
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John Cowan | 30 Apr 2010 11:14 am
"John C - you sound like a lovely person. If by talent you mean greedy folk unwilling to contribute to society at a reasonable rate then good riddance"
thank you Paul, I am a lovely person. I earn nowhere near what this guys earn, however, they still pay income tax and all the other taxes as we pay as we earn in this country. I dont necessarily agree with how much they pay but they are massively in demand as most of the western economies are funded by their "City" and to keep them funding us they need to be here! Therefore they do pay into society by a shed load more than I do, just because of their pay!
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John Blackmore | 30 Apr 2010 11:19 am
Sorry but I have never understood the need to give higher rate relief to anyone. What is the point of taxing someone at 40% or 50% and then giving them some of it back ? To all you Tory IFAs just be thankful I'm not the Prime minister or chancellor
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Paul Dummett | 30 Apr 2010 12:07 pm
Paul all I can say is what a crock...reasonable rate are you on a different planet. Successful people aren't successful by luck they contibute to society by working hard, producing income for HMRC in the form of paye tax, employee NI contributions, employer NI contributions, vat collection employing staff and giving them the opportunity to buy things from other companies giving those employers the benefit of collecting tax for hmrc so that the government can give away money to spongers who do not want to work, to people who have children with the only purpose of getting free housing and a hand out. An unreasonable contribution determined by idiots who are not fit to run a business but fit enough to ruin a country. Did you notice that you are the only person not to agree. Democracy!
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