Brown in crossfire for ‘scuppering’ pension Commission’s report |
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Fri, 25 Nov 2005 12:45
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LONDON: Chancellor Gordon Brown was yesterday accused of trying to scupper pensions reform as he rejected key recommendations from the Turner Commission’s report ahead of publication.
10 Downing Street was a scene of angry words and accusations as ministers from the Brown camp attacked Blairite MPs for leaking a letter the chancellor wrote to the Commission. In the letter Mr Brown criticised the efforts of Lord Turner who was appointed to review the pensions situation and present a general blueprint for reform.
Backed by the Prime Minister Tony Blair, Mr Brown thought it fit to ridicule Lord Turner’s recommendations that increases in state pension be linked to earnings. Mr Brown said that such a reform measure would cost the government too much. Any reform steps would have to be “sustainable, fair and affordable” he said. In effect, Mr Brown declared the Turner report’s proposals as ‘unafordable’.
The report slated for publication next Wednesday was expected to form the basis for a debate on the future of pensions.
Mr Brown’s step could project the government in a poor light, especially as it is faced with a £60bn pensions deficit, a problem it hasn’t been able to solve in its eight years of power.
Mr Brown defended his move in a speech to the Institute of Directors last night saying the government could only spend ‘what we can afford’. He said he preferred a means tested pension which would help workers from the lowest income groups. It appears the chancellor is trying his best to delay a decision on pensions until the next Parliament when he could be replacing Mr Blair as the Prime Minister.
By preempting the Turner Commision’s effort, Mr Brown is only provoking the opposition who were quick to point out that it was he who was largely responsible for the pensions crisis by his £5 billion raid on pension funds. Now, they said, he was trying to force a softer report from the Commission.
Recommendations by Lord Turner are believed to include increasing the basic state pension from £80 to £109 a week and raising the retirement age from 65 to 67.
Among the first to react at 10 D yesterday, were John McDonnell, leader of the Campaign Group of Labour rebels who warned that Mr Brown’s rejection of Lord Turner’s recommendations would “result in a wave of anger in parliament, in the Labour movement and among Britains pensioners”. Shadow Chancellor George Osborne said the public would find it ‘disgraceful’ and disappointing as they expected a more serious and ‘grown-up’ debate on pensions. Osborne also said he would now like to see how Mr Blair would react to Mr Brown “pulling the rug from under a report the Prime Minister had commissioned”.
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