View more on these topics

Brown claims move was the right decision

Chancellor Gordon Brown claims that changing the pension tax rules was the right decision in terms of long-term investment in the economy.

On the campaign trail in Scotland ahead of next month’s elections, Brown said his 1997 Budget move to scrap advance corporation tax relief on pension scheme dividends was “the right decision for investment and it was the right decision for the future of our economy”.

Brown aides insist the move was a much needed simplification of the system, removing a double taxation “distortion”.

The Prime Minister also gave Brown his full backing last week, despite suggestions from Blair’s former economic adviser that he was unhappy with the move at the time.

Also campaigning in Scotland, Blair said: “It was the right decision then and it is the right decision now.”

Brown’s standing was also helped by former Conservative pensions adviser Stephen Yeo, who is currently senior partner at Watson Wyatt. Yeo told a national newspaper that although the move had not helped, it was not one of the major reasons for the decline in final-salary schemes compared with issues such as increased longevity and the stockmarket crash.

Recommended

Aegon Asset Management in bid to boost rebranded image

Aegon Asset Management is revamping its image to boost brand awareness as a follow up to the wider rebranding of the Aegon group last August.The rebranding and advertising campaign launched by the Aegon group last year aimed to give more prominence to Scottish Equitable’s parent company Aegon as many consumers appeared unaware that the two […]

5% Slump in young people taking out life insurance

The number of young people buying life cover has fallen by 5 per cent in the past year, according to Lifesearch.The protection company released its new business figures,which showed that people aged 35 years and under buying some form of life cover had fallen by 5 per cent to 31 per cent in the 12 […]

ScotLife slams Sipp providers’ charges

Scottish Life has hit out at rivals for being “economical with the truth” on Sipp charges, warning that advisers could soon face a wave of misselling complaints under the new regulatory regime.

PSigma fund shines in dull Isa season

Bill Mott’s new PSigma income fund was one of the big winners in what has been a broadly disappointing Isa season.Mott’s fund attracted 108m in its limited offer period, making it the most successful fund launch this year. Many advisers have reported Isa sales broadly flat on last year, with Chelsea Financial Services marginally below […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment