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Labour pressures Govt to publish Budget annuities reform evidence

Labour has tabled an amendment to the Finance Bill that would force the Treasury to publish the analysis undertaken before Chancellor George Osborne announced a radical shake-up of pensions tax rules.

Osborne stunned the industry during his Budget speech when he announced plans drastically liberalise pensions income rules.

The reforms, which come into effect from April next year, will mean anyone aged 55 or over will be able to take their entire pension pot as cash without being hit with a 55 per cent tax penalty. Instead, savers who do this will be taxed at their marginal rate.

Labour has proposed an amendment to the Finance Bill that would require the Government to publish any analysis on the impacts of the pension reforms prepared by the Treasury prior to the Budget.

The information Labour wants the Government to publish includes:

  • any assessment of the impact of the pledge to offer everyone free, impartial, face-to-face retirement guidance;
  • the distributional impact of the changes;
  • any behavioural analysis undertaken; and
  • the financial risk assessment.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Mischievous by Labour. Sour grapes as usual because they never thought of such a radical shake up of the post-retirement market which could benefit most of the public with Personal Pension savings.

  2. Interesting tactic, and not without some logic.

    Of course, it’ll come to nothing, because there’s no way Osborne would have proposed something so drastic and far reaching without weighing up all the evidence.

    And there’s no way he’d have done it simply so he can project in a big boost to Treasury coffers in the budget before the next election so as to be able to afford a pre-election tax cut.

    Is there?

  3. Good luck on that folks.

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