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Tories attack Brown over pensions Say sorry on pensions, Brown told
(10 minutes later)
Chancellor Gordon Brown must "say sorry" for his 1997 decision to scrap tax relief on pensions, the Tories say. Chancellor Gordon Brown has been urged to "say sorry" for his 1997 decision to scrap tax relief on pensions, during a stormy debate in the Commons.
The Conservatives are holding a debate over Mr Brown's handling of the issue, with a no-confidence vote expected. Shadow chancellor George Osborne has tabled a with a no-confidence vote in Mr Brown over the issue.
Shadow chancellor George Osborne told the Commons Mr Brown had "acted with stealth", hitting 125,000 people's pensions, and urged him to apologise. Mr Osborne told MPs Mr Brown had "acted with stealth", hitting 125,000 people's pensions, and urged him to apologise.
The chancellor has said he made the "right decision", arguing it has boosted the UK economy.The chancellor has said he made the "right decision", arguing it has boosted the UK economy.
Mr Brown is due to speak in the Tory-led debate and expected to win the vote because of Labour's Commons majority.
It is highly unusual for opposition parties to call for motions of no confidence on individual ministers.It is highly unusual for opposition parties to call for motions of no confidence on individual ministers.
'Look in the eye' 'Destruction'
Even if they lose, the Tories will hope the debate embarrasses Mr Brown, the firm favourite to succeed Tony Blair as prime minister. Even if, as expected, they lose the vote, the Tories will hope the debate embarrasses Mr Brown, the firm favourite to succeed Tony Blair as prime minister.
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.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.
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. The Conservative motion reads: "This House has no confidence in this chancellor's handling of pension benefits."
"After the revelations about the raid, how can anyone have confidence in his judgement?" Mr Osborne said: "This chancellor has from the start acted with stealth, blocked all attempts to get at the truth and now blames everyone but himself for the destruction he has brought to Britain's pensions.
"In short, the abolition of dividend tax credits was in the words of the prime minister's own economic adviser at the time, a mad thing to do, quite crackers."
He added that Mr Brown had never shown "any expression of sympathy" for those whose funds had been "raided".
The government help given so far had been "inadequate", Mr Osborne said.
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 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.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.
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 over advice given to the chancellor erupted earlier this month.