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Brown facing no-confidence debate Brown faces Tories over pensions
(about 14 hours later)
The Conservatives are set to call for a vote of no confidence in Chancellor Gordon Brown over his 1997 decision to scrap tax relief on pension funds. MPs are debating Gordon Brown's 1997 decision to scrap tax relief on pension funds, with the Tories threatening to hold a vote of no confidence.
Shadow chancellor George Osborne has called his party's Commons motion a test of whether Mr Brown has the "political courage to apologise". Recently revealed documents suggest the chancellor made the move against the advice of some Treasury officials.
It is highly unusual for opposition parties to call for votes of no confidence on individual ministers. The Tories say Mr Brown has "sought to hide" a "reckless raid" and have questioned his "political courage".
The Treasury said Mr Brown would be responding to the Tory motion. The chancellor has said he made the "right decision" and that it has boosted the UK economy.
While Labour's Commons majority should ensure the chancellor comfortably survives the vote, the Conservatives will hope that it focuses attention once again on his handling of the pensions issue. Mr Brown is due to speak in the Tory-led debate and expected to win the vote because of Labour's Commons majority.
Documents It is highly unusual for opposition parties to call for motions of no confidence on individual ministers.
The motion is part of an opposition-led debate. 'Explain'
A recent release of Treasury documents under the Freedom of Information Act led to claims that Mr Brown had ignored the advice of officials when he abolished tax relief on pension funds. The Treasury denies the claim. Even if they lose, the Tories will hope the debate embarrasses Mr Brown, the firm favourite to succeed Tony Blair as prime minister.
Mr Osborne said: "This is Gordon Brown's chance to explain why he sought to hide the dangers of his reckless raid on pensioners' savings. A recent release of Treasury documents under the Freedom of Information Act led to claims that the chancellor had ignored the advice of officials when he abolished tax relief on pensions. The Treasury denies the claim.
"After the revelations about the raid, how can anyone have confidence in his judgement? Shadow chancellor George Osborne said: "This is Gordon Brown's chance to explain why he sought to hide the dangers of his reckless raid on pensioners' savings.
"We shall see if the chancellor has the political courage to apologise to the millions of pensioners affected." "After the revelations about the raid, how can anyone have confidence in his judgement?"
The wording of the Tory motion is likely to be along the lines of: "This House has no confidence in the chancellor's handling of occupational pensions." The Treasury confirmed Mr Brown - the strong favourite to succeed Tony Blair as prime minister later this year - would be responding to the no-confidence motion.
The Treasury confirmed Mr Brown - the strong favourite to succeed Tony Blair as prime minister later this year - would be responding to the Tory no-confidence motion in the debate.
CompetitivenessCompetitiveness
Earlier, Economic Secretary to the Treasury Ed Balls, who was the chancellor's closest adviser in 1997, defended the decision to abolish the relief for pension funds as part of the package of business tax reforms designed to improve competitiveness.Earlier, Economic Secretary to the Treasury Ed Balls, who was the chancellor's closest adviser in 1997, defended the decision to abolish the relief for pension funds as part of the package of business tax reforms designed to improve competitiveness.
"These were difficult decisions - inevitably controversial," he said in a speech to the British Chambers of Commerce annual conference in London."These were difficult decisions - inevitably controversial," he said in a speech to the British Chambers of Commerce annual conference in London.
"But the government judged that this package of reforms was necessary both to cut national debt and improve the climate for long-term investment and enhance the competitiveness of the UK."But the government judged that this package of reforms was necessary both to cut national debt and improve the climate for long-term investment and enhance the competitiveness of the UK.
"And since 1997 we have indeed experienced a decade of stability that has helped improve the environment for UK businesses to invest - with the fastest growth in business investment in any nine-year period since data began in the 1960s.""And since 1997 we have indeed experienced a decade of stability that has helped improve the environment for UK businesses to invest - with the fastest growth in business investment in any nine-year period since data began in the 1960s."
The Conservatives said that they would be tabling an amendment to the government's Pensions Bill when it returns to the Commons on Wednesday to help those who have lost occupational pensions since 1997.The Conservatives said that they would be tabling an amendment to the government's Pensions Bill when it returns to the Commons on Wednesday to help those who have lost occupational pensions since 1997.
Mr Brown has insisted his change to pension tax rules 10 years ago was the "right decision". Mr Brown has previously said his pensions decisions had raised £5bn a year from pension funds and had been a key reason the UK economy had been strong for the past decade.
He said it had raised £5bn a year from pension funds and had been a key reason the UK economy had been strong for the past decade. It is the first time Mr Osborne and Mr Brown have gone head-to-head in the Commons on the subject of pensions since the row over advice given to the chancellor erupted earlier this month.
It is the first time Mr Osborne and Mr Brown have gone head-to-head in the Commons on the subject of pensions since the row erupted again earlier this month.