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Brown faces Tories over pensions | |
(about 14 hours later) | |
MPs are debating Gordon Brown's 1997 decision to scrap tax relief on pension funds, with the Tories threatening to hold a vote of no confidence. | |
Recently revealed documents suggest the chancellor made the move against the advice of some Treasury officials. | |
The Tories say Mr Brown has "sought to hide" a "reckless raid" and have questioned his "political courage". | |
The chancellor has said he made the "right decision" and that it has boosted the UK economy. | |
Mr Brown is due to speak in the Tory-led debate and expected to win the vote because of Labour's Commons majority. | |
It is highly unusual for opposition parties to call for motions of no confidence on individual ministers. | |
'Explain' | |
Even if they lose, the Tories will hope the debate embarrasses Mr Brown, the firm favourite to succeed Tony Blair as prime minister. | |
A recent release of Treasury documents under the Freedom of Information Act led to claims that the chancellor had ignored the advice of officials when he abolished tax relief on pensions. The Treasury denies the claim. | |
Shadow chancellor George Osborne said: "This is Gordon Brown's chance to explain why he sought to hide the dangers of his reckless raid on pensioners' savings. | |
"After the revelations about the raid, how can anyone have confidence in his judgement?" | |
The Treasury confirmed Mr Brown - the strong favourite to succeed Tony Blair as prime minister later this year - would be responding to the no-confidence motion. | |
Competitiveness | Competitiveness |
Earlier, Economic Secretary to the Treasury Ed Balls, who was the chancellor's closest adviser in 1997, defended the decision to abolish the relief for pension funds as part of the package of business tax reforms designed to improve competitiveness. | Earlier, Economic Secretary to the Treasury Ed Balls, who was the chancellor's closest adviser in 1997, defended the decision to abolish the relief for pension funds as part of the package of business tax reforms designed to improve competitiveness. |
"These were difficult decisions - inevitably controversial," he said in a speech to the British Chambers of Commerce annual conference in London. | "These were difficult decisions - inevitably controversial," he said in a speech to the British Chambers of Commerce annual conference in London. |
"But the government judged that this package of reforms was necessary both to cut national debt and improve the climate for long-term investment and enhance the competitiveness of the UK. | "But the government judged that this package of reforms was necessary both to cut national debt and improve the climate for long-term investment and enhance the competitiveness of the UK. |
"And since 1997 we have indeed experienced a decade of stability that has helped improve the environment for UK businesses to invest - with the fastest growth in business investment in any nine-year period since data began in the 1960s." | "And since 1997 we have indeed experienced a decade of stability that has helped improve the environment for UK businesses to invest - with the fastest growth in business investment in any nine-year period since data began in the 1960s." |
The Conservatives said that they would be tabling an amendment to the government's Pensions Bill when it returns to the Commons on Wednesday to help those who have lost occupational pensions since 1997. | The Conservatives said that they would be tabling an amendment to the government's Pensions Bill when it returns to the Commons on Wednesday to help those who have lost occupational pensions since 1997. |
Mr Brown has previously said his pensions decisions had raised £5bn a year from pension funds and had been a key reason the UK economy had been strong for the past decade. | |
It is the first time Mr Osborne and Mr Brown have gone head-to-head in the Commons on the subject of pensions since the row over advice given to the chancellor erupted earlier this month. | |