Talking of Gordon Brown, whom so many are keen to bring back to Westminster politics, and the current politics documentary on Blair/Brown, consider this quotation from an article in The Times today....
"...the documentary also failed to mention another decision by Brown in his first budget that continues to cause harm to this day, namely his abolition of the tax credit that pension funds could reclaim on dividends paid by British companies. The move sucked £5 billion annually from the UK’s pension funds, a move that, on a conservative estimate, has deprived them of a cumulative £120 billion.
It took a sledgehammer to what was, previously, Europe’s best-funded occupational pensions system. It hastened the demise, at least for workers in the private sector, of defined-benefit (“final-salary” in the jargon) pensions. It forced millions of workers to increase their pension contributions or, more likely, will have condemned them to a lower income in retirement than would have been the case otherwise.
And it doubtless resulted in deficits in dozens of pension schemes that eventually caused them to fold, which, in the words of Frank Field, the former Labour minister, left “hordes of workers without the pension to which they have been compulsorily contributing, sometimes over many decades”.
Since his eviction by the voters in 2010, an attempt has been made to rehabilitate Brown as a dignified, almost cuddly, elder statesman. The truth, sadly airbrushed from this documentary, is that he did lasting damage to the UK economy."
Ian King is business presenter for Sky News. Ian King Live is broadcast on Sky News at 10am Monday to Friday