Britain’s Labor Party attacks planned pension changes as a gift to the rich | – #Britains #Labor #Party #attacks #planned #pension #gift #rich
SummaryLabour says Conservative pension changes help the top 1%. Brain centers of politics labour I doubt it will increase its offer much. IFS says it’s free child maintenance social It is a big expansion for the state
LONDON, March 16 (Reuters) – Britain’s opposition Labor Party on Thursday rejected the government’s planned pension changes cancellation promised to do and said that many households tax It’s a boon for the top 1% of pension savers at a time when it’s suffering growth and high fees. inflation.
Chancellor of the Exchequer Jeremy Hunt announced in his budget statement on Wednesday that £1m (£1.2m dollars) for life which is many pension collections tax surprised the Conservative Party by announcing that it would not impose the penalty.
Hunt said the reform was part of his bid to keep more older people in work and tackle Britain’s labor shortage.
Labour, which is well ahead of the Conservatives in opinion polls ahead of an election due in 2024, said the move was the “wrong priority, at the wrong time, for the wrong people”.
Laborthe base rates of this policy for people with more than £1.4m in their pension pot tax It said it meant taxpayers would pay around £150,000 less in tax overall, at a time when they were facing higher tax bills.
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“The Budget was a chance for the government to unlock Britain’s promise and potential,” said Rachel Reeves, Labour’s incoming finance minister. “But the only surprise, 1 for 1% billion The £100,000 pension was a move to widen the cost-of-living gap.”
94 given to households to cushion the rise in the cost of living, Hunt argued for the changes billion said to be dwarfed by government support worth pounds.
He added that there is an urgent need for changes in pensions to overcome the shortage of doctors. Some high-end ones that have served for a long time doctors, National Adding to the strain on the NHS, they have reduced hours or taken early retirement as they approach the lifetime pension threshold.
“I don’t think it’s the wrong values to support our NHS,” Hunt told BBC radio when asked about criticism of the government helping those who earn more.
“If you ask what it’s going to do to ordinary families up and down the country, it’s getting their NHS surgery done faster. And this is the simplest and fastest way to solve the problem.”
Labor, doctors said he would introduce a more targeted scheme for
REGRESSIVE AND EXPENSIVE
The Resolution Foundation, a think tank that focuses on issues facing low- and middle-income households, described the tax change to discourage early retirement as highly regressive and wasteful.
An increase in the annual tax-free pension contribution allowance from £40,000 to £60,000, together with the abolition of the lifetime allowance, will give the government 1.2 billion said it would cost £.
The Resolution Foundation also said it could lead to up to 15,000 jobs – but at a cost of around £80,000 per extra worker.
According to the think tank, even this employment gain may be overstated because the support “could encourage some people to retire earlier than they might otherwise”.
Another think tank, the Institute for Fiscal Studies (IFS), said official forecasts of employment gains from the measure were optimistic, and that the government would avoid inheritance tax on pension savings for heirs. free he said that he should tighten the rules that allow it to be done. .
“The lack of any coherent strategy here remains deeply disappointing,” said IFS director Paul Johnson.
IFS is publicly funded for families with children under the age of three child plans to expand care also won’t give a big boost to staff numbers and will mostly benefit parents who are already in work, he said.
But this is official for preschool children in England child more than 80% of the maintenance of the government 20It will lead to paying close to zero in 2000, the think tank added.
“This is a massive expansion of the welfare state,” Johnson said.
Expired in September Prime Minister Criticism of Liz Truss and her Finance Minister Kwasi Kwarteng’s “mini budget” echoed the tax support for the wealthiest. Then they have the highest rate of income tax for Britain’s highest earners cancellation plans to do cancellation they had to do.
Reporting by Kate Holton and David Milliken Editing by William Schomberg, Toby Chopra and Christina Fincher
Our standards: Thomson Reuters Trust Principles.
2023-03-16 16:53:19
Source – reuters
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