In 1997 Tony Blair, the then Prime Minister and Gordon Brown the then Chancellor, callously decided to axe the tax relief on dividends paid to Pension Funds. Why they suddenly needed to destroy Private Pension Schemes in taking this extra tax remains a mystery. It was probably for purely idealistic reasons.
The private pension schemes in Britain were, in 1997, the envy of the world. They were run by companies for their employees and guaranteed them a pension in accordance with the conditions of the scheme. These schemes had been running for numerous years. They complemented the meagre State Pension.
After this tax raid, companies had to increase contributions to cover the liabilities of the various schemes. This ultimately led to many companies closing final salary schemes and other schemes were for new employees only.
It is now 2009 and Britain is less than nine months away from the next General Election; you may well ask what Gordon Brown will do before that election !!! The latest news is that he is going to put money into Northern Rock and Bradford & Bingley to protect the final salary pots of employees and Directors. Yes, Gordon Brown is going to bail out the Bankers again.
You may well ask why the hell is he throwing good money after bad again? Why can he not help other private pension schemes? He does seem to be acting like a gambler who is putting his last penny on the last throw of the dice.
I have a hunch !!! Gordon Brown himself had a comfortable majority of 18000 in his constituency in 2005. He himself may be re-elected but if the Socialists lose the General Election, one could say he will lose the leadership of the New Labour Party. Before that happens I think he would prefer to resign quickly and look for a job. But where.....?
Blair already covets the job of EU President, so politically he cannot go any higher for the time being. That is why I bet he will look for work with friends in the Banking Sector !!! After all, he has bailed them out with all he has got !!! And I bet he negotiates himself a Pension Pot !!!
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