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"Not sure how Tony Blair can be blamed for what happened to private pensions. They are by definition an arrangement between an employer and an employee."Actually it's entirely fair to blame Tony Blair and Gordon Brown for the closure of many final salary schemes and for the deteriorating returns in defined benefit / defined contribution schemes.One of Gordon Brown's first act was to abolish the ACT tax relief - it allowed pension funds to claim back the tax paid on dividends from companies in which they owned shares. This led to a significant drop in investment returns for reinvestment and thus the benefits that could be afforded. Interestingly Tony Blair and Gordon Brown repeatedly failed to drive any meaningful reform of Public Sector Pensions so we now have the amazing situation where workers in the Private Sector can expect to receive between 3 and 8% employer contributions to pensions whilst the public sector continues to receive an employer paid for pension benefits equivalent toto 40-60% of salary.The destruction of private sector pensions and failure to regulate banking were the two key drivers of the subsequent Buy to Let boom as workers started to invest in property instead - as we now know this has resulted in widespread under declaration of rental incomes for tax as well as distorting the housing market to the extent many people had no prospect of ever being able to afford their own home. This latter issue will finally be addressed next year by the new tax on Buy To Let gross rents rather than net profit on Buy to Lets.

Ed Yelland ● 3435d