Conservatives aim to boost pensions pot and competitiveness

News Article - 29 August 2006
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The Conservative Party is considering the adoption of policies to boost the value of pension funds and improve the UK's competitiveness.

Writing in the Sunday Telegraph, Shadow chancellor George Osborne admitted that he was considering a package of measures including the abolition of stamp duty on shares.

The average pension fund would increase in value by £8,000, according to estimates from the Conservatives.

The Labour government abolished tax relief on pension fund trading in 1998.

A pamphlet published by centre-right think tank the Bow Group suggests that cutting stamp duty on shares would put some £4 billion back into the stock market and boost share values by about £80 billion.

"Repairing the damage done to the pensions system has got to be a top priority for the next Conservative government," said Mr Osborne.

"Sadly, simply reversing the pensions tax he imposed in 1998 wouldn't work, as many final salary schemes have closed.

"We need to look at new ways of repairing the damage and that is why I am particularly keen to look at stamp duty on shares."

He added that new taxation on personal pensions instigated by Gordon Brown represented the chancellor's "single most destructive" act on the UK's economy.

A report on tax by the party's commission is due to be published in October.

In response, the government said that such an abolition of stamp duty on shares would create a £4 billion hole in Britain's public finances.

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