Tag Archives: tax-free

Robbing your pension to pay for your health: Philip Hammond’s latest attack on working people

Philip Hammond: It’s such a giggle paying for your failed economic policies with other people’s pensions, isn’t it?

You know a Tory policy idea is pants when even the right-wing papers are panning it – and both the Express and the Daily Mail have pummelled this one.

It’s also yet another indication of the devastating failure of Tory austerity policies.

I’ll explain:

Tory Chancellor Philip Hammond needs to find £20 billion by 2024, in order to meet a pledge by his government to increase funding for the National Health Service.

He can’t use normal tax receipts to pay for it because there isn’t enough in the annual tax take – that’s the failure of Tory austerity policies. They said they would reduce the national debt but instead they have doubled it, meaning significant amounts of government tax income are diverted into interest payments.

The government currently pays £48 billion per year servicing the national debt – more than twice as much as Mr Hammond needs. The money simply isn’t available to him if he continues to pursue austerity policies – and he has insisted that this is what he will do.

So he wants to raid the future pensions of every working-age man and woman in the United Kingdom instead.

In order to encourage everyone to pay into a pension pot, the government offers tax relief on the amount people set aside for their retirement. It uses the rate of Income Tax you pay to calculate how much tax relief you get.

This means that, if you want to pay £100 and are paying 20 per cent Income Tax, you only need to pay £80 and the government pays the rest. If you’re paying the higher rate of 40 per cent, you only need to pay £60.

This only applies to payments of up to £40,000 every year. There’s no tax relief on sums paid above that amount.

Mr Hammond is considering either cutting the rate of pension tax relief, or cutting the tax-free annual allowance.

Either way, if you’re a working-age citizen of the UK, you’ll have less money in your pension fund by the time you want to start drawing it out.

Hammond will probably present it as a fait accompli – if you want the NHS to continue functioning (and remember, that service has only fallen into difficulties after the Tories allowed private companies to cherry-pick profitable services for them to provide at a high cost to the taxpayer) then you must accept poverty in retirement.

It isn’t true, though.

He could try expansionist economic policies that would build up the tax take – or he could close down the tax havens that currently hold more than £498.2 billion, according to recent research.

But he’s not going to. Why not?

Visit our JustGiving page to help Vox Political’s Mike Sivier fight anti-Semitism libels in court


Vox Political needs your help!
If you want to support this site
(
but don’t want to give your money to advertisers)
you can make a one-off donation here:

Donate Button with Credit Cards

Here are four ways to be sure you’re among the first to know what’s going on.

1) Register with us by clicking on ‘Subscribe’ (in the left margin). You can then receive notifications of every new article that is posted here.

2) Follow VP on Twitter @VoxPolitical

3) Like the Facebook page at https://www.facebook.com/VoxPolitical/

Join the Vox Political Facebook page.

4) You could even make Vox Political your homepage at http://voxpoliticalonline.com

And do share with your family and friends – so they don’t miss out!

If you have appreciated this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!

Buy Vox Political books so we can continue
fighting for the facts.


The Livingstone Presumption is now available
in either print or eBook format here:

HWG PrintHWG eBook

Health Warning: Government! is now available
in either print or eBook format here:

HWG PrintHWG eBook

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:

SWAHTprint SWAHTeBook

David Cameron won general election with series of lies? Tell us something we DON’T know!

Yvette Cooper is only half-right. Cameron certainly lied to win the election – but Labour failed to beat him because Labour did not effectively answer those lies.

Labour’s five-year-long failure to deny the claim that it had spent too much while in government is the perhaps the most obvious example.

But Cooper has chosen to highlight promises that were made to the people of the UK, which have been broken in the very short time since.

David Cameron won the general election on the basis of a series of lies, Yvette Cooper said on Thursday, as she highlighted a series of broken promises by the Conservatives.

In a sharpening of her rhetoric against the Tories, the Labour leadership contender accused Cameron of ripping up nine pre-election promises. She said he had changed tack on areas ranging from child tax credits to housing and rail electrification.

Cooper, the shadow home secretary, said: “We may have our own leadership election going on, but Labour can’t allow David Cameron to get away with this and carry on like nothing has happened – he is taking the British public for fools. We have to confront him directly on every lie and broken promise – that’s exactly what I plan to do in parliament and across the country.

The nine areas identified by Cooper are:

  • Cuts in child tax credits. Cooper said Cameron denied during the election that he would cut child tax credits. She said Osborne, the chancellor, unveiled £4.5bn of cuts to child tax credits in the budget which would hit women twice as hard as men.
  • Cuts to child benefit after Cameron said during the election there would be no cuts beyond a two-year freeze. Cooper says it will now be subject to a four-year freeze.
  • Cancellation of rail electrification plans.
  • Downgrading of the number of affordable homes due to be built. The Office for Budget Responsibility has said 14,000 fewer homes will be built.
  • Delaying of a decision on a new airport runway in south-east England. Downing Street says it is standing by its commitment to reach a decision by the end of this year.
  • Delay in the introduction of tax-free childcare from 2015 to 2017.
  • Shelving of an election pledge to give public officials three days off work to take part in volunteering.
  • Delay until 2020 in the introduction of the social care cap.
  • Reversal of pledge for greater government transparency after launch of review into freedom of information.

Source: David Cameron won general election with series of lies, says Yvette Cooper | Politics | The Guardian

Join the Vox Political Facebook page.

If you have enjoyed this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!

Vox Political needs your help!
If you want to support this site
(
but don’t want to give your money to advertisers)
you can make a one-off donation here:

Donate Button with Credit Cards

Buy Vox Political books so we can continue
fighting for the facts.

Health Warning: Government! is now available
in either print or eBook format here:

HWG PrintHWG eBook

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:

SWAHTprint SWAHTeBook