The most chaotic policy announcement of the week: David Cameron on pensions

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.

Read more by or more about or .
This entry was posted in News.
Advert

7 Comments

  • Clegg's Candid Fan 30th Nov '08 - 10:24am

    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.

  • Clegg's Ardent Admirer 30th Nov '08 - 12:40pm

    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.

  • Clegg's Candid Fan 30th Nov '08 - 1:03pm

    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.

  • Helen Duffett 30th Nov '08 - 1:49pm

    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.

  • Cleggs Greatest Admirer 30th Nov '08 - 3:34pm

    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!

Post a Comment

Lib Dem Voice welcomes comments from everyone but we ask you to be polite, to be on topic and to be who you say you are. You can read our comments policy in full here. Please respect it and all readers of the site.

To have your photo next to your comment please signup your email address with Gravatar.

Your email is never published. Required fields are marked *

*
*
Please complete the name of this site, Liberal Democrat ...?

Advert

Recent Comments

  • Jack
    This is devastating. Christine Jardine is my kind of Lib Dem. There's a left-right element to that comment, but it's not just that. I worry about a liberal part...
  • Graham Evans
    Surely the wider party membership and Liberal Democrats voters in Edinburgh West are entitled to know what has been going on in the local party. All we know is ...
  • Ruth Bright
    Supreme irony that one of the commenters here about diversity at conference mortified me at a conference of yore by drawing attention to the fact that I was alw...
  • Rebecca Taylor
    @Anne - biological sex based exclusions were always permitted under the Equality Act (before the Supreme Court ruling) in limited and defined circumstances like...
  • Roderick Lynch
    Christine Jardine MP is one of our most formidable MP’s . She can debate you in depth on most subjects. One of MP’s that kept the party relevant when wipe o...