A former chairman of the National Association of Pension Funds has called for simplification of the pensions tax regime, as he announced he is standing for an independent party in a hotly constested London constituency.
Robin Ellison is the candidate for independent party ‘U’ for the Hampstead and Kilburn constituency in the 2015 general election.
His manifesto seeks simplification of the pensions tax regime, which now stands at 5,000 pages of rules, simplification of workplace pensions regulation, now standing at 80,000 pages, and long-term stability in pensions policy, rather than ad hoc changes every few months.
The ageing of the population means that government policy should encourage the creation rather than the destruction of retirement savings, Mr Ellison argued.
But he said it is increasingly difficult and expensive for employers and individuals to save for their old age and protect themselves against the risk of living beyond their savings.
Mr Ellison, a pensions lawyer with international law firm Pinsent Masons, argued his proposals for reform of the state pension system in 2010 were adopted almost word for word by the coalition government and come into force next year.
On his new proposals he said: “Taxation will be simple and flat-rate; 1,100 reliefs will be abolished, saving £100bn a year.
“Administration of hospitals and health, roads, railways, courts, education, energy supplies, immigration and the rest is a matter for government, but not for politicians. The system suffers from short-termism.
“Our government will set long-term strategies and budgets for all these matters, and then the civil service will be left to get on with it. That will minimise pork-barrel politics.
“Politicians will stop meddling in administration, making policy on the hoof, and should avoid reading the Daily Mail.
“The population is ageing – and an absurd and complicated private pension system is not a sensible response. The ‘U’ party has a detailed plan for the recovery of pensions in Britain.”
emma.hughes@ft.com
