CBI warns government not to 'tinker' with pensions tax
The first industry-wide survey since the general election sets out businesses' pensions priorities this Parliament.
The CBI has reported that according to the latest survey companies wish for stability on tax, policy and funding to boost pensions. The survey, which was carried out in conjunction with Mercer, reported that:
- Almost eight out of ten respondents are against further changes in pension taxation, while the majority cited certainty as the government's top pension priority in this Parliament, as recent substantial reforms bed in.
- The percentage of respondents identifying the need to make auto-enrolment administration easier leaped to nearly 70% compared with just 41% in 2013. Two thirds also cited changing regulation adding to the compliance burden. And the vast majority indicated that increasing take-up levels among employees for existing schemes must be a priority, rather than raising minimum contributions.
Neil Carberry, CBI Director of Employment and Skills, said:
'Recent regulatory changes, coupled with auto-enrolment and state pension reform, mean UK business leaders now crave stability.
Businesses want to focus on ensuring employees are making the most of what's on offer, but there is clear concern about regulatory changes eroding incentives to save, which must be avoided at all costs.'
'Businesses are clear that the current framework of pensions tax relief at the point of saving - while complex - is the best for encouraging pension saving.
Losing this would remove company incentives, as employer-provided pensions are the only way to deliver low-cost saving at substantial scale at levels above automatic enrolment rules. A change would cause damage to the fiscal position too in the long-term.'
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Internet links: CBI news Report