Speaking at the Tax Incentivised Savings Association conference on Wednesday, Hammond said that if Government ministers were subject to FSA regulation they would be jailed for some of the comments they have made over the investment returns that savers could hope to achieve through personal accounts.
He said that while the Conservatives backed personal accounts in principle, they still have serious concerns about how they will work in practice.
Hammond said: “The first concern we have is about means-testing and the potential in personal accounts for the biggest misselling scandal of all time, underpinned by some of the comments made by ministers about the returns people will receive on their investment in personal accounts.
“I’m quite sure that if ministers were subject to the FSA some of them would be jailed by now.”
A Labour spokesperson says: “This is truly pathetic. As they struggle to find a coherent economic policy, yet again we can see the Tories desperately trying to make headlines.
“Given the cross-party support for the Pensions Bill, it is disappointing to see George Osborne’s right hand man make such childish comments.”