It is important to note that HM Revenue & Customs like to suggest that tax paid on pensions can be offset against the current cost of pension tax relief, but doing so breaches all the rules of accounting. The tax paid on pensions enjoyed in the current year relates to the tax reliefs given in earlier years, and not those of the current year. As such they cannot be offset. Items must relate to the same year to be offset.
Eh? Windmills are grossly polluting. For there are emissions in the production of a windmill. That the windmill saves emissions in years 2 through 15 cannot be offset because that breaches all the rules of accounting. Items must belong to the same year to be offset.
Government spending creates costs now. But this cannot be offset against the tax revenues collected in the future, to do so would breach all the rules of accounting.
Either Ritchie’s just killed off the multiplier or he’s too stupid to realise he’s done so.