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Pension 'spin' attack on Treasury | Pension 'spin' attack on Treasury |
(about 3 hours later) | |
The leader of the UK's largest business organisation has accused the Treasury of using a spin in the row over scrapping pension tax credits. | The leader of the UK's largest business organisation has accused the Treasury of using a spin in the row over scrapping pension tax credits. |
Ministers say business leaders urged Gordon Brown to make the move prior to his first budget in 1997. | Ministers say business leaders urged Gordon Brown to make the move prior to his first budget in 1997. |
But Richard Lambert, the Confederation of British Industry's director-general, says his group objected to the policy. | But Richard Lambert, the Confederation of British Industry's director-general, says his group objected to the policy. |
It follows opposition claims that Mr Brown ignored warnings from officials over the effect of the tax change. | It follows opposition claims that Mr Brown ignored warnings from officials over the effect of the tax change. |
The row comes barely a month before Mr Brown is expected to begin his bid for the Labour leadership. | The row comes barely a month before Mr Brown is expected to begin his bid for the Labour leadership. |
'No record' | 'No record' |
On Friday, Treasury officials' advice from 1997 on scrapping tax relief on pension funds was published, revealing the Chancellor was advised of risks if he went ahead. | On Friday, Treasury officials' advice from 1997 on scrapping tax relief on pension funds was published, revealing the Chancellor was advised of risks if he went ahead. |
We objected strenuously to the policy Richard LambertCBI | We objected strenuously to the policy Richard LambertCBI |
Ministers insisted that on balance the advice endorsed the reform, and that the CBI had lobbied them to go ahead. | Ministers insisted that on balance the advice endorsed the reform, and that the CBI had lobbied them to go ahead. |
But in an interview with the Guardian newspaper, Mr Lambert said: "This is a convenient bit of spin by the Treasury. | But in an interview with the Guardian newspaper, Mr Lambert said: "This is a convenient bit of spin by the Treasury. |
"There is no record of any kind that we lobbied for [cuts in tax relief] and there is no record, because we objected strenuously to the policy." | "There is no record of any kind that we lobbied for [cuts in tax relief] and there is no record, because we objected strenuously to the policy." |
However, the Treasury says categorically that the CBI did make the case for the tax change in 1996, when Adair Turner was the director-general. | However, the Treasury says categorically that the CBI did make the case for the tax change in 1996, when Adair Turner was the director-general. |
A source at the Treasury told the BBC that the argument for cutting the credits was made to Mr Brown in private, so no record would have been kept. | A source at the Treasury told the BBC that the argument for cutting the credits was made to Mr Brown in private, so no record would have been kept. |
BBC political correspondent Laura Kuenssberg said that it was a knock to Mr Brown's reputation for the CBI to question the Treasury's version of events. | BBC political correspondent Laura Kuenssberg said that it was a knock to Mr Brown's reputation for the CBI to question the Treasury's version of events. |
'Deafening silence' | |
Shadow chancellor George Osborne said he will lead a Commons debate on the issue when MPs return from their recess. | Shadow chancellor George Osborne said he will lead a Commons debate on the issue when MPs return from their recess. |
He added: "It is time Gordon Brown faced the music for the damage he's done to British pensions." | He added: "It is time Gordon Brown faced the music for the damage he's done to British pensions." |
But Work and Pensions Secretary John Hutton told ITV1's The Sunday Edition that the Tories had no alternative. | But Work and Pensions Secretary John Hutton told ITV1's The Sunday Edition that the Tories had no alternative. |
He said: "If they think it's such a bad policy, maybe we'll hear a pledge from them to reverse these tax changes and so far there's been deafening silence." | He said: "If they think it's such a bad policy, maybe we'll hear a pledge from them to reverse these tax changes and so far there's been deafening silence." |
However, he added that a serious challenge to Mr Brown in the leadership election would be a "good thing". | However, he added that a serious challenge to Mr Brown in the leadership election would be a "good thing". |