David Cameron, quoted in the Financial Times on Wednesday: “My vision over time is to move increasingly towards defined contribution rather than final salary schemes [for the public sector]”.
Chris Grayling, his pensions spokesman on Thursday: “That is not a decision we have taken. That is not a decision we have even discussed.”
Oops.
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7 Comments
Then again, at least Cameron has the nous not to air his opinions of his senior colleagues in the hearing of hostile journalists:
http://www.mirror.co.uk/news/top-stories/2008/11/29/lib-dumb-liberal-democrat-leader-nick-clegg-slags-off-his-own-party-colleagues-on-packed-plane-115875-20934579/
Our plans to restrict pension tax relief to the basic rate would reduce the number of Defined Benefit pension schemes by making them very hard to operate. When longevity increases, or investment returns are lower than expected, the employer must increase their contributions to cover money to be paid to existing pensioners (“retireds”), those who have left the firm (“deferreds”) and those still working (“actives”). Is the firm supposed to track down all the deferred to see whether they are higher rate tax payers so that the firm can make the extra tax payment? Or work out their tax rates when the were working for the firm, and back allocate the new money to different years? Even if it possible, it would be very costly, and makes running a DB pension scheme much less attractive. As a result some employers will decide that it is no longer worthwhile, and will close the scheme. That surely is the experience of the last 20 years. The LDs may not want to abolish DB schemes, but we would achieve it, to the detriment of many.
the cameron statement on pensions is a bombshell and well worth highlighing however it was on wednesday. Are you really trying to tell readers its appeared here now by coincident and is nothing to do with the Mirror story ?
I’m surprised to see no discussion on here of the Mirror’s Nick Clegg story unless I missed it.
I think it mainly confirms what many in the party had been privately thinking that he, Clegg, has been privately thinking (If you see what I mean). But nevertheless, it raises interesting questions about the performance of particular spokespeople.
It also raises interesting questions about how mind-bendingly clueless Nick Clegg is.
And I’m sure the Conservatives will have carefully noted the revelation that he would think about going into coalition, “But only if the Tories lose”, for repeated future use in their target seats in the south of England.
Clegg’s Ardent Admirer: Posts on Lib Dem Voice are often scheduled in advance, as was the case with this one. Grayling responded on Thursday, and I’m looking forward to more on this.
Helen, I accept that entirely and wouldn’t want to impune any ones integrity. The site is marvelous and we’d all be poorer without it!