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| Version 1 | Version 2 |
|---|---|
| Brown defends pensions decision | Brown defends pensions decision |
| (about 4 hours later) | |
| Chancellor Gordon Brown has insisted his change to pension tax rules 10 years ago was the "right decision". | Chancellor Gordon Brown has insisted his change to pension tax rules 10 years ago was the "right decision". |
| Mr Brown said the change, which raised £5bn a year from pension funds, had been a key one to ensure the UK economy had been strong for the past decade. | Mr Brown said the change, which raised £5bn a year from pension funds, had been a key one to ensure the UK economy had been strong for the past decade. |
| He was speaking at a Scottish campaign event where the decision was also backed by Prime Minister Tony Blair. | He was speaking at a Scottish campaign event where the decision was also backed by Prime Minister Tony Blair. |
| The Conservatives say Mr Brown took the decision despite advice saying that it would cause a £75bn hole in pensions. | The Conservatives say Mr Brown took the decision despite advice saying that it would cause a £75bn hole in pensions. |
| 'Best advice' | 'Best advice' |
| It has been seen as one of a number of factors - alongside the dotcom crash, firms taking pensions holidays and longer life expectancy - which has led to the large-scale closure of final-salary pension schemes. | It has been seen as one of a number of factors - alongside the dotcom crash, firms taking pensions holidays and longer life expectancy - which has led to the large-scale closure of final-salary pension schemes. |
| The current row over the tax decision taken a decade ago was sparked by files released following Freedom of Information requests showing officials had warned of the effects of abolishing dividend tax credits. | The current row over the tax decision taken a decade ago was sparked by files released following Freedom of Information requests showing officials had warned of the effects of abolishing dividend tax credits. |
| One from the Inland Revenue, obtained by the Times newspaper, says: "We agree that abolishing tax credits would make a big hole in pensions scheme finances." | One from the Inland Revenue, obtained by the Times newspaper, says: "We agree that abolishing tax credits would make a big hole in pensions scheme finances." |
| It was the right decision for investment. It was the right investment for our pensions and the right decision for our economy Gordon Brown class="" href="/1/hi/uk_politics/6520855.stm">Tories unveil crime plans class="" href="/1/hi/uk_politics/6520975.stm">Reject Labour, say Lib Dems | |
| A separate Financial Institutions Division paper suggests that the pension schemes "should be able to cope" after the reform but warns that there are "risks". | A separate Financial Institutions Division paper suggests that the pension schemes "should be able to cope" after the reform but warns that there are "risks". |
| The row escalated on Monday when the Confederation of British Industry reacted angrily to a Treasury minister's claim it had lobbied for the tax change - which was to scrap the dividend tax credit. | The row escalated on Monday when the Confederation of British Industry reacted angrily to a Treasury minister's claim it had lobbied for the tax change - which was to scrap the dividend tax credit. |
| Mr Brown was asked about the dispute with the CBI by saying that the tax change was his alone, and was taken after receiving a range of advice, on the "best advice that I had". | Mr Brown was asked about the dispute with the CBI by saying that the tax change was his alone, and was taken after receiving a range of advice, on the "best advice that I had". |
| He said that he would "take the same decision again", adding: "I've attempted to take the right decisions, no matter how inconvenient and difficult they might be." | He said that he would "take the same decision again", adding: "I've attempted to take the right decisions, no matter how inconvenient and difficult they might be." |
| Mr Brown said the decisions he took, such as the pension tax change, had ensured the long-term strength of the economy which benefited everyone, including pensioners. | Mr Brown said the decisions he took, such as the pension tax change, had ensured the long-term strength of the economy which benefited everyone, including pensioners. |
| 'Difficult' | 'Difficult' |
| The benefits of a strong economy for pensioners, he said, included the winter fuel allowance, the pensions credit and the planned relinking of the state pension to earnings. | The benefits of a strong economy for pensioners, he said, included the winter fuel allowance, the pensions credit and the planned relinking of the state pension to earnings. |
| "It was the right decision for investment. It was the right investment for our pensions and the right decision for our economy," he said. | "It was the right decision for investment. It was the right investment for our pensions and the right decision for our economy," he said. |
| It doesn't allow us to say he destroyed the pension system Evan DavisBBC economics editor Evanomics blog | It doesn't allow us to say he destroyed the pension system Evan DavisBBC economics editor Evanomics blog |
| Mr Blair added: "All these decisions are difficult... People say to us 'Look, here are the pros of the argument and here are the cons of the argument... | Mr Blair added: "All these decisions are difficult... People say to us 'Look, here are the pros of the argument and here are the cons of the argument... |
| "The decision that was taken was manifestly in the right interests of the economy." | "The decision that was taken was manifestly in the right interests of the economy." |
| At the launch if the Lib Dem English local elections campaign, Sir Menzies Campbell said he welcomed the fact Mr Brown had taken responsibility for the decision. | At the launch if the Lib Dem English local elections campaign, Sir Menzies Campbell said he welcomed the fact Mr Brown had taken responsibility for the decision. |
| He said he now hoped Mr Brown "will take responsibility" for putting right the "crisis" in pensions which has developed over the past decade. | He said he now hoped Mr Brown "will take responsibility" for putting right the "crisis" in pensions which has developed over the past decade. |
| The row with the CBI came after Treasury minister Ed Balls claimed Mr Brown was lobbied by the CBI in favour of the tax changes in 1996. | The row with the CBI came after Treasury minister Ed Balls claimed Mr Brown was lobbied by the CBI in favour of the tax changes in 1996. |
| But Lord Turner, the CBI's director general at the time, said this was "completely untrue". | But Lord Turner, the CBI's director general at the time, said this was "completely untrue". |