Lloyds Bank boss warns Labour against raid on pensions in the Autumn Budget over fears move could put ‘a handbrake on the economy’ _ Hieuuk
The boss of Lloyds banking group has warned Labour not to raid pensions in the Budget.
Charlie Nunn said pensions were ‘critical’ and urged the Government to increase take-up, rather than tighten the rules.
He said ‘anything that helps people continue to invest, and take appropriate risk’ is ‘really important’, and ‘anything that does the opposite would be a handbrake on the economy’.
Labour is considering raiding pensioners’ tax-free lump sums to try to balance the books in this month’s Budget.
Under current rules, most savers can take 25 per cent of their pension pot tax free on reaching the age of 55, up to a maximum £268,275 slash the amount to £100,000 in a bid to raise £2billion.
Charlie Nunn CEO of Lloyds Banking Group, appearing on the BBC’s Sunday With Laura Kuenssberg where he warned Labour not to raid pensions in the Budget
Labour is considering raiding pensioners’ tax-free lump sums to try to balance the books in this month’s Budget. Pictured: UK Chancellor Rachel Reeves
The Government has also refused to rule out raising employer pension contributions – angering businesses.
Mr Nunn, Lloyds CEO, was asked on BBC One’s Sunday With Laura Kuenssberg yesterday if he would be worried about tighter rules on pensions, or reducing the amount people can put into their pot.
He replied: ‘Yes, I think…pensions, and contributions to pensions, is critical.
‘We see about 40 per cent of people in the UK have a pension which won’t give them even a basic living allowance… so we need to increase enrolment and investments in pensions.’
It came as Business Secretary Jonathan Reynolds again hinted Government could raise employers’ national insurance contributions on October 30.
