View more on these topics

Pension rescue at the 11th hour

Just when you thought he didn’t care, Gordon has presented the final-salary pension victims with a great big bouquet of cash.

An extra £6bn is the headline figure for the Financial Assistance Scheme and this looks like the Government is genuinely taking its responsibilities seriously.

Could this possibly be linked to the fact that they are now going to try and sell us a new pension system – personal accounts? I think so. Restoration of trust is vital and it does not come cheap. The pensioners will not be complaining, though, as the FAS payments will now be broadly in line with the PPF structure.

It is strange though that the Government is still challenging the High Court’s recent ruling if they are now going to pay the cash out anyway.

Good news for pension advisers too, as the change to income tax rates will make pension saving even more attractive for higher-rate tax payers. Salary sacrifice is going to become more attractive too, given the vicious hike in National Insurance limits.

With the generous pension contribution limits introduced last year, I think that this Budget is broadly a positive one for pensions and it only took him 11 attempts to get it right.


Sub-prime suspects

As the US sub-prime mortgage market goes into freefall, Helen Pow considers if the adverse problems might cross the Atlantic.

Budget 2007: Without a trace suspense story

The Government has set up “suspense accounts” alongside its crackdown on Asps for the funds of people who cannot be traced at 75.The Budget notes state special rules will be created for providers that have been using Asp measures to hold the funds of members who are untraceable at 75. Until now, any funds in […]

Back in a big way

The last few years have been characterised by the unremitting outperformance of small and mid-cap companies over their large-cap brethren. This trend has been present in almost every corner of the world and is strong enough to be a key determinant of investment success or failure.The trend has gone on long enough for some fund […]

BUDGET REACTION: Law firm warning over VCT & EIS changes

Budget changes to enterprise investment schemes and venture capital trusts could stifle investment, law firm Osborne Clarke warns.The Chancellor announced the introduction of tests yesterday including an employee headcount test and overall investment limits that must be met for investors to take advantage of tax relief schemes on EISs and VCTs. In future on the […]


News and expert analysis straight to your inbox

Sign up


    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