Pension theft is catastrophic

by Roger House, Federation of Small Businesses chairman, Kent and Medway region

We have focused closely on the economy for so long, the arrival of yet another Budget statement could be seen as a minor event.

We seem to have hit better times. Our quarterly economic roundup session with the Bank of England Agent delivered a solid positive opinion. This was replicated largely at the Kent Business Advisory Board where our ‘big brothers’ were also in a positive mood.

The FSB was calling for encouragement for enterprise in the Budget and the elements delivered are reasonable. But in no way do they go far enough – which seems to be the norm.

The national living wage will be a challenge for small businesses
The national living wage will be a challenge for small businesses

As ever what seems to be a generous proposal adds up to only a little when calculated in the overall scheme of things. The adage of giving with one hand and taking with the other comes to mind.

My accountant colleagues in the FSB seem pleased with the increase in the annual investment allowance, which is something the FSB has been pushing for.

But this is only good for those with the capability to invest.

The impact on Kent – which is predominantly micro-business – will be seen as the year progresses. Much more will happen when we know the outcome of the bid for funding through the Local Enterprise Partnership.

We were not expecting an exciting Budget, this will happen nearer the next election, but I do welcome the £7bn package to cut manufacturing energy bills. The FSB has continuously called for greater transparency on energy prices and for reform to the energy market.

Again, the support for road repairs recognises a problem that so many small businesses face, costing them at least £2,500 a year.

The Chancellor has taken some interesting steps to open up changes to personal pension arrangements but I am astounded there has been little comment in the media about the theft of statutory pensions, especially for women.

Allowing people their private pensions without an annuity is a quiet re-balancing but does not mitigate the loss of £40,000 over six years in state pension payments.

I know of many examples where the pension due to start this year is now set back by six years. This is a catastrophic situation, which has not been picked up on anywhere.

Allowing people their private pensions without an annuity is a quiet re-balancing but does not mitigate the loss of £40,000 over six years in state pension payments.

This will have an impact on employment. We need to make space for the graduates, the apprentices and the young in general, but now a huge swathe of retirement-age people will be hanging on for dear life.

Talking of the young, the extra help in childcare should make a useful impact.

In celebration, I will start the first of my 360 pints of beer, so I have earned one free one before the year is out – if I survive.

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