View more on these topics

McClymont attacks ‘complex’ Labour pensions tax relief reforms


Former Labour shadow pensions minister Gregg McClymont has criticised the party’s plans to cut tax relief for higher earners, branding the reforms “complicated” and warning they could disenfranchise bosses.

Labour’s proposed reforms to pensions tax relief, first set out in 2009, would see relief tapered from 45p to 20p for those earning above £150,000. The plans remain party policy in the run up to the election despite being roundly condemned by think-tanks, advisers and the wider pensions industry.

Speaking to Money Marketing McClymont, who lost his seat in the general election, says: “I always had a more nuanced view on tax relief than some people inside and outside of my own party.

“If workplace pensions are to remain a central pillar of our pensions system, then you have to ensure pensions remain attractive to upper management who make the decisions about the structure of the workforce pensions system. Otherwise you will end up with de minimis contributions.”

On Labour’s proposed reforms to tax relief, McClymont says: “I wasn’t mad about the top rate to basic rate going from 45p to 20p, but that was a response to a Budget when we had to give an explanation of how we would continue to fund tax credits.

“It is understandable that the pensions industry didn’t like that policy because it increases the complexity of the system. I can see why the Treasury wanted to do that, but I had a lot of sympathy with the industry saying this was going to make things a lot more complicated and difficult.”

The full interview with Gregg McClymont will be published in the 18 June edition of Money Marketing



LGIM unveils single fee for retail range

Legal & General Investment Management (LGIM) has introduced a single combined fee for its retail funds to simplify charges for investors. The new fund management fee (FMF) that kicks in today covers the costs of running the fund and replaces the ongoing charge figure (OCF) that is currently applied to the funds. Previously, LGIM levied […]

Paul Lewis Peach 250x255

Paul Lewis: How can we clean up charging structures?

I bought a washing machine the other day. An LG. £799. I know, I know, it was expensive but it gave me a lot of choice and had very good performance reviews. I rang a local plumber to fit it, who asked me the make and model and quoted me £279.65. “That seems a lot,” […]


Suffolk Life halts Sipp acquisition plans as director exits

Suffolk Life has stopped actively investigating acquiring other Sipp providers due to concerns it is too hard to weed out “unacceptable assets”. Strategic partnership director Chris Jones, who led the acquisition business, has decided to exit the company following the decision to focus on organic growth. The firm has made four acquisitions of Sipp back […]

Tony Wickenden: Tax planning under the Tories

Now the Conservatives have claimed victory, what can we expect with regards to pensions, tax and financial planning? Although we are only just into the first full tax year living with the radical changes to the rules on pension drawdown and death benefits we can expect more change, with a special focus on trying to […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Rt Hon Sir Arthur Streeb-Greebling 4th June 2015 at 8:05 pm

    Well he’s ginger so he would say that wouldn’t he? Oh, and a loser to boot.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm