Thorny pensions problems likely to feature in Budget on 11 March

Chancellor Sajid Javid is likely to tackle some thorny pensions problems in his first post-election Budget which will take place on Wednesday 11 March. Experts have predicted that pension reform could be a key part of his plans as he seeks to honour manifesto commitments. There could be reforms affecting the net pay problem for low earners, solving the Annual Allowance Taper problem for doctors and pledges on the State Pension Triple Lock. The Chancellor may opt to deal with some of these issues before the Budget, believe some. The Treasury says that the Chancellor will “set out ambitious plans to unleash Britain’s potential, level up across the UK and usher in a decade of renewal.” The Budget will open a “new chapter for the economy” and will help seize opportunities that come from ‘getting Brexit done,’ says the Treasury. Mr Javid, said: “People across the country have told us that they want change. We’ve listened and will now deliver. “With this Budget we will unleash Britain’s potential – uniting our great country, opening a new chapter for our economy and ushering in a decade of renewal.” The Chancellor will today provide an economic update to Cabinet colleagues before updating Parliament during Treasury oral questions. According to the Treasury, his Budget will: • open a new chapter for the UK’s economy and prepare it for the decade ahead”• deliver on the Government’s promises on tax, to help tackle the cost of living for hard-working people”• make good on the commitment to ‘level up’ and spread opportunity, including investing billions of pounds across the country” At the Budget, he will update the Charter of Fiscal Responsibility with new rules, “taking advantage of low interest rates” to invest “properly and responsibly”, while keeping debt under control. The Budget will include investing in new hospitals, training new police officers, funding vocational education and the ‘biggest ever cash increase’ to the National Living Wage. On 31 December, the Government announced that low-paid workers will receive a 6.2% pay rise with a new National Living Wage (NLW) of £8.72 per hour. The Treasury says that the launch of the Budget process means that individuals, interest groups and representative bodies can submit a Budget representation to HM Treasury. Bristol-based wealth manager and investment provider Hargreaves Lansdown expects the Chancellor to honour manifesto commitments related to pensions and older people. These include solving the net pay problem for low earners, solving the Annual Allowance Taper problem for key workers such as doctors and maintaining the State Pension Triple Lock. It believes some of these could be announced before the Budget. Hargreaves also wants to see more radical action on pensions including a review of the UK’s pension tax relief system which it sees as “no longer fit for purpose” and socially divisive.

Thorny pensions problems likely to feature in Budget on 11 March

Related items

News from Twitter