Budget  

Wait for social care reforms continues

Clive Bolton

During his speech today, chancellor of the exchequer Rishi Sunak boasted repeatedly that his was a government which "gets it done".

Very sensibly, it was a Budget that focussed on the issues our economy is facing right now - Covid-19 and the fragility in the economy through the Brexit transition.

There was also a clear nod to the powerful trends and concerns that got them elected in December - levelling up, dealing with low pay and the challenges facing smaller businesses and start-ups.

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The increase in investment in infrastructure may provide some long-dated asset type suitable for pension schemes and insurers giving more choice and better value in that part of the yield curve.

However, these are long term proposals so we shouldn’t expect anything immediately.

Some of the changes that could have impacted pension and investment may well have been delayed for a future Budget when the economy faces less uncertainty.

The increase in tapered relief by £90,000 does help those in defined benefit schemes, hence the reference for doctors.

However, we will have to review the detail to see if the overly complex interaction between the various reliefs and taxes for individuals earning between £100,000 and £200,00 is simplified.

But the long wait for social care reform continues. A consultation on this was supposed to be published in 2018 and has not yet seen the light of day – so for Mr Sunak there is getting it done to still do.

Clive Bolton is managing director of life and pensions at LV