Advisers have united to condemn Gordon Brown’s third big U-turn in a year after he indicated that pension term assurance is likely to be scrapped.
IFAs are furious that, once again, their future planning arrangements have been scuppered by the Government. Experts say that the wording of Brown’s speech indicates that PTA will go although people who already have a policy in place will not be affected.
The controversy follows the block on putting residential property in Sipps in last year’s pre-Budget report and the restrictions placed on alternatively secured pensions this week.
Highclere Financial Services partner Alan Lakey says: “The Government is leading advisers to water, saying that they can have a drink but then pulling the plug. There are U-turns here, there and everywhere so it is difficult to plan ahead with any type of certainty. It is not just annoying for advisers but it proves that you cannot trust this Government. This is the first Government that is continually making it difficult with retrospective legislation.”
Anand Associates managing director Bhupinder Anand says: “It is indicative of this Government not understanding why people are not saving money. It is also hard for people and advisers to make long-term decisions as how can you if the Government reverses the rules a few months later? This news is not unexpected but it means advisers have to second-guess the Government.”