IFAs claim Chancellor Alistair Darling’s pre-Budget report is too ambitious and built on vote-preserving tactics.
Church Hill Finance principal Anthony Badaloo says Darling’s growth prediction that GDP will increase by 1.5 per cent next year, then as much as 3.5 per cent by 2012 is too ambitious. He says: “The pre-Budget report is showing that the Government is effectively taking a bet on a 3.5 per cent growth in the next year or so, which is a little bit ambitious.
“This economy could go either way and if it does go the other way, there was no contingent arrangement mentioned. It places the economy wide open to being poten- tially downgraded by the credit agencies.”
Yellowtail Financial Planning managing director Dennis Hall says Darling is targeting the wealthy, delaying the UK’s debt recovery and creating more work for IFAs.
He says: “Where we have identified those clients that we knew were going to be affec-ted by the previous pension announcements, he has now brought in a much wider range of people so I am going to have to go back though my client bank and identify those people earning £130,000 and over and take into consideration employer pension contributions as well. Yet again, it seems to be an envy tax on high earners.”