Date published: 2007/03/31
The BBC says:
The chancellor is facing calls from the Tories for an inquiry into the pensions gap after claims the Treasury ignored warnings of a funding shortfall.
Confidential Treasury papers have shown he was told in advance of scrapping dividend tax in July 1997 that it could wipe £75bn from pension fund values.
The Conservatives said Gordon Brown had shown contempt for pensioners.
But Treasury minister Ed Balls said Mr Brown had scrapped the credits on the "best advice" of civil servants.
What a non-story this is. Brown is not nearly half so clever as he and the media portray, but everybody knew full well that these tax changes would have a negative impact on pension funds, it's a no-brainer. The real question is whether or not these tax changes made sense (and there are arguments on both sides). Perhaps the Tories, instead of being silly, would let us know what they would do about the tax credit if and when they come to power.
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