He’s still touting the same old plan for pensions:
In the same year the total cost of subsidies to the private UK pension industry through tax and national insurance reliefs on contributions made and from the tax exemption of income of pension funds amounted to £37.6 billion. The result was that, albeit indirectly, the entire cost of private sector pensions paid in that year was covered by tax reliefs given to the private sector pension funds that paid them. To put it another way, every single penny of the cost of UK pension payments in 2007/08 was in effect paid by the UK government.
Yep, still making that mistake. Looking at the current subsidy to future pensions and comparing it to the current pensions being paid.
Twattish, isn’t it?
Most importantly we suggest that if those pension funds are to attract tax relief in future they must use a significant part of the £80 billion of contributions they receive each year to invest in new jobs, new technology and new infrastructure for the UK so that the wealth that is needed to grow our economy, to create jobs and to build the real capital base that must be passed to the next generation is built on the back of pension fund investment. As the report shows they do not do this at present. Most of the assets of pension funds are currently invested in short term speculation that has no impact on real growth prospects in our economy, and may actually harm it.
And their solution is that pensions must be handed over to the venture capitalists.
Because that is what we call the people who invest in new businesses. VCs.