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Tuesday, 18 February 2014

Brown accused of "scaremongering on pensions"

The Scottish National Party have accused the former, Labour, Prime Minister Gordon Brown of "scaremongering on pensions" and have described him "as lacking in all credibility," also accusing the former Chancellor and Prime Minister of "having done more than anyone to destroy the value of people’s pensions."

The SNP base their claims on that, while Chancellor, Gordon Brown abolished Advanced Corporation Tax (ACT) relief, which is estimated to have cost pension schemes at least £100 billion within a decade, and in 1999 chose to increase the state pension by just 75 pence. 


A recent publication by the National Institute of Economic Research shows that Scotland is disadvantaged by having the same retirement age as the rest of the UK, and pensions in Scotland would be six to eight per cent cheaper than the rest of the UK. The paper also demonstrated that under current UK schemes, there will be a transfer from Scotland to the rest of the UK of almost £50 million per year by 2020.

Meanwhile, opinion polling has consistently shown that people in Scotland want decisions on pensions and welfare to be made in Scotland – with today’s Scottish Social Attitudes Survey showing that 63% of people want either ‘devo-max’ - that would see only defence and foreign affairs remain in Westminster control – or independence.

Commenting, Scotland’s Deputy First Minister and SNP Deputy Leader Nicola Sturgeon said: “The last person anyone in Scotland will take lessons from when it comes to pensions is Gordon Brown – the man who destroyed final-salary pension schemes with his £100 billion raid, and insulted our older folk with a miserly 75p increase in the state pension. Mr Brown's track record means that he lacks all credibility on this subject, so it is little wonder that his speech bears little relationship with reality."

Continuing Ms Sturgeon said: "The Scottish Government has set out clearly and unambiguously that people will continue to receive the pension entitlements they have built up – and any attempt to insinuate otherwise is grossly irresponsible. Social protection costs represent a lower share of tax revenues in Scotland than for the UK as a whole - meaning pensions are more affordable for Scotland - and academic surveys and polls consistently show that people want decisions on pensions and welfare to be made in the Scottish Parliament rather than by Westminster. Just this month the National Institute of Economic Research showed that pensions in Scotland would be 6% to 8% cheaper than in the rest of the UK."

Concluding Nicola Sturgeon commented "Scotland is better placed to afford our pensions and welfare than the UK – which is why Scotland’s Future set out our plans to maintain the triple-lock, and set up an independent commission to look at the appropriate retirement age for people in Scotland. Where Westminster has decimated pension schemes and is rushing ahead an accelerated timetable that will see the retirement age rise rapidly, a Yes vote in September will ensure we have a pensions system that is right for Scotland."