Howard unveils plan to boost pensions saving
Conservative leader Michael Howard today announced a £1.7 billion tax cutting plan to boost pensions contributions and encourage saving.
A Conservative government would give £10 for every £100 saved towards pensions by starting rate and basic rate taxpayers, Mr Howard said.
The measure, which would be in the first budget of a Conservative government, would boost pensions contributions for someone on average earnings by £500 a year, he added.
The Conservative leader said that for too long this issue had been swept under the carpet, adding that “doing nothing isn’t an option”.
The party said the proposals – due to come into affect from April 2006 – would benefit ten million working people.
Transport Secretary Alistair Darling said the Conservatives did not have the money to fund their pensions plans.
Speaking at a press conference in London Mr Darling said: “they don’t have the money … their policy is worthless because of that.”
Earlier, in an interview in The Sunday Times Mr Howard said: “I’m very clear that tackling the pensions crisis will be a key part of my job as Prime Minister.
“That means sending out a clear message that it pays to save, and that a Conservative government would be on the side of people who do the right thing by putting money aside for their retirement.”
The Conservatives have already promised £1.3 billion to help pensioners with council tax.
Tory Pensions spokesman David Willetts claimed that Labour had pledged “virtually nothing” on pensions.
The party would use almost half of proposed £4 billion tax cuts to tackle the pensions crisis, leaving a further £1 million to announce before the general election on May 5.
The party has ruled out a rise in income tax or national insurance thresholds, but could turn to inheritance tax, stamp duty, capital gains, small business or environmental taxes for further cuts.
The Liberal Democrats claim that the Tories’ tax plans are unachievable and the Government has dismissed them as unaffordable.
