18 days to go: We pledge £1.7 billion boost for saving

Conservatives have announced a £1.7 billion tax cutting package aimed at tackling the nation’s pensions time-bomb, and at repairing the damage done to basic rate taxpayers by Mr Blair’s pensions tax.

 

 

 

Under the plan, the Government will add £10 to every £100 a person saves towards their pension pot. The aim is to encourage people of all ages to put more money into their pensions.

The scheme will mean that for a person on average earnings, the relief across a working lifetime could boost their pension by up to £500 a year. It is expected that around 10 million basic and starting rate taxpayers will benefit from the tax relief immediately.

Speaking to Conservatives.com about the announcement, Mr Howard said: “When I meet people they often say to me “too many politicians are interested in the short term – tomorrow and next week, rather than ten years time. Today, we’re announcing a detailed, carefully considered and fully costed proposal to repair the long term damage done by Mr Brown’s pension tax.”

He went on: “Only by encouraging more people to save can we ease their anxieties about their long-term security and give our economy a brighter, better future.”

The latest announcement is the second of the Conservative Party’s package of targeted tax cuts worth £4 billion. Conservatives have already announced they will halve council tax for more than five million pensioners aged 65 or over in their first Budget. A third tax cutting announcement will be made later this week.

Conservatives believe that tackling the pensions crisis will be one of the key challenges facing the next Conservative government. Under Labour, the amount of money people save has fallen by more than a third.

Gordon Brown’s £5 billion a year raid on pension funds and the spread of means-testing have damaged pensions and savings. Conservatives believe that the tax system should encourage people to save for the future – not penalise saving.

 

story from: www.conservatives.com