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George Osborne
“One big con”: George Osborne advanced the Tories' attack on the Budget

Labour stealth taxes ‘will rob pensioners of £110 a year’

Joe Murphy, Political Editor
26 Mar 2010


Pensioners will be £110 worse off a year from stealth taxes hidden in the Budget fine print, George Osborne said today.

In a hard-hitting speech, the shadow chancellor said Alistair Darling's freeze on allowances would hit elderly people on middle-of-the-road retirement incomes — a group that is already being squeezed by the low interest rates on their nest-eggs.

Branding the Budget “one big con” he said: “And pensioners are the victims of the biggest con of all.”

His analysis came as Labour MPs began to fear that the Budget was being caught up in a backlash against income tax rises on middle and upper earners that are timed to go off after the election.

The timing could not be worse —because the election countdown starts in earnest tomorrow when Gordon Brown unveils Labour's five key pledges in a speech at Nottingham.

A poll today gave the Conservatives a four-point lead — up from yesterday's two-point margin but far short of what Mr Cameron needs for a clear victory. The YouGov survey for The Sun put the Tories on 37 per cent, with Labour on 33 and the Liberal Democrats on 18.

Tory grandee Lord Heseltine said Mr Cameron needed to be eight points ahead to win. “He has got this mountain to climb,” he told Channel 4.

Mr Osborne said the freeze in the tax-free allowance of £9,490 for a single pensioner aged 65 to 74 meant inflation of 3.7 per cent reduced its value in real terms by £351.13, effectively meaning higher income tax of £70.26 for a man on median earnings of £267 a week.

But the basic state pension will rise by just 2.5 per cent, which he said failed to match price rises, costing another £59.

“This Budget will hit pensioners' incomes,” said the shadow chancellor. “A stealth tax that hits pensioners hardest – that wasn't even mentioned by the Chancellor in his speech.”

Mr Brown is expected to attempt to overcome public distrust in politics by upgrading Labour's usual election pledges to “guarantees” carrying legal backing.

One is expected to be to halve the £167 billion deficit within four years, others may be to give NHS patients the right to go private if an 18-week wait is exceeded and to give pupils the right to one-to-one support if they need it.

Reader views (18)

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I Do not have much faith GO or cameron but when it comes down to Gordon Brown,
why would anyone vote for someone who is in total denial when he makes mistakes this man can do nothing wrong as far as he is concerned. This is the priminister who
renaged on the Lisbon treaty sold our gold reserves off cheap and allowed Jackie Smith to walk away with over £100,000 of tax payers money for claiming her main home was a spare room in her sisters house, and also allowing MP's to get away with
flipping their houses including the chancellor. Why hasn't the inland revenue been
knocking on their door..I wont be holding my breath..I and many people I know just
do not know what to do, do we not bother to vote ..or maybe give the tories a chance
they can't do any worse than Labour..anything to give Brown a kick up the backside.
If after five years they don't deliver we can always vote them out again.

- Reg Blyth, Luton Beds England, 27/04/2010 17:44
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I am not suprised they will rob Pensioners,just before i got my Pension they took away my Married allowance.It now seems Serps does not go up with inflation.This Government who pays the lowest state Pension in Western Europe while Council Tax is the highest as to go.

- Stan White, leeds, 29/03/2010 08:17
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I am so looking forward to my 80th birthday.

Gormless U-Turn Bully Brown will give me an extra .25p per week!

WHY does the UK pay the LOWEST State Pension in the developed world?

- Reuben Camara, Plot 1, Morecambe Compound, EUSSR, 26/03/2010 16:56
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Osborne's claims are just morte Tory lies. Cheryl Cole is so right to call him and Cameron oily

- Keith Price, Luton, Emgland, 26/03/2010 16:48
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I am coming to the view that Labour could well win the election. I think it will be a disaster for the country but maybe not for the Conservatives as who would want to take over at a stage like this. Labour will have to implement massive cuts but they are going to be incapable of clearing up the mess they have created. OK, the recession has been largely worldwide (didn't affect Australia) but did we really need to borrow so much? And at the time I don't recall the Conservatives saying that we were borrowing too much. They just said they wouldn't spend all of the growth on government whereas Labour said they would spend it all on government. I also don't recall Prudence Brown saying "no more boom and bust, subject to international considerations." I also love the way that Prudence says that the recession started in America except when he is with Obama or in America.

But for the future of the country we do need new fresh enthusiastic people with energy and the wish to really sort things out i.e. the Conservatives. But I think we as a nation like being on benefits and safe lazy cushy jobs and we don't really like change. My view is that if Labour win it is very serious and I would advise young people to leave unless they are in really good well paid jobs because if they are not they will have an unexciting future. Sadly it's too late for me.

- Stephen C, London, 26/03/2010 16:47
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Labour will go down in history for achieving the considerable feat of making politicians more loathed than even tax inspectors or traffic wardens,with greed, sleaze and downright fraud in some cases combined with little or no accountability to their constituents will make this next election a turning point for the trough meisters in the house of common thieves...from which a new dawn will herald in the next bunch of lying *******s.

- Jacob, England without Hope or Crosby, 26/03/2010 16:44
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I fully agree with Maria's comments. As far as immigrants are concerned, this Government has never planned ahead, i.e. provision of adequate schools, housing, water, cemeterys. I think they just want to kill off all the pensioners to make space for the new comers!

- Volpone, London, London, 26/03/2010 16:39
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Well, I do not know any old age pensions with saving Oh, I forgot the Tory votes, "The pretenders" Our pensioners are treaded very very badly, and that since 1945. I would like our politicians, to live on the conditions they expect us to 70 pounds a week the basic pension.

- Fred, London, 26/03/2010 16:13
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Quote: Stephen C, London. Wonder how much the Civil Service spends on flowers? And biscuits.

We will know when another whistle blower tells us; Stephen.

But it will probably be under the category; allowable crumpet expenses and blue films.

- Mickinlondon, london, 26/03/2010 15:53
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Funny I read in the Telegraph that more people now trust the government than the opposition on the economy.

It looks like the Conservatives have missed the boat, you could not thought of anything worse happening to a government than that which has been endured by the current bunch, yet the conservatives have failed to capitalise. For all their scheming and scare mongering they are slipping.

Even Michael Hesiltine, was stating that they now had a mountain to climb. How could they be failing so badly. Unfortunately the Conservatives do look weak and inexperienced, look at Mr Osborne and you would not trust him to pay to clean your car, he just looks unemployable in any other walk of life.

I'm sorry but a lot of people think this way.

- Arthur, London, 26/03/2010 15:23
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Cameron and Osborne, keep saying Labour are robbing and conning us all, but what are they going to do?,they do not give many alternatives, other than name calling and made up on the hoof accusations, really there are not that many people hit by the recession, and ones that are, have not quite managed their finances properly, and would be the first to admit it.
Do they think the public are thick?, this has been a Worldwide problem, and I am sure, and hope these countries are going to emerge a little bit wiser.
so Mr Cameron and Mr Osbourne, if you have anything to say, back it up with you alternative ideas, don't just start a scrap in the playground and hope that everyone gathers around to cheer you on, as far as I can see, the underdog is not doing to badly.
Talk about growth, don't keep on about change, talk about improvement, in education, health, armed forces, not change, "improvement", people are sick of change, people are sick of bad news, they want to hear positive ideas, not vote for us and get much of the same, what about a referendum to get us out of the EU?, a sure vote winner, and with good management, the deficit can be reduced substantially over the the next 5 years, but please, stop scaring the shit out of the public, it ain't going to win you any votes.

- David Crocket, Bradford, UK, 26/03/2010 15:12
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Of course although the basic State Pension is going up by 2.5% the additional State Pension and Graduated State Pension is not going up at all. Talk about a con trick!

I watched Alistair Darling being interviewed on Channel 4 News last night at 11 Downing Street.

Beautiful and expensive flower arrangements in the Chancellor's office, wish I could afford such flowers. Just shows how much profligate waste there is in Whitehall. Wonder how much the Civil Service spends on flowers? And biscuits?

- Stephen C, London, 26/03/2010 14:27
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Sadly, our Government have memory problems. They seem to have forgotten that today's Pensioners, were yesterday's builders of our lovely country. Our maternity wards are full of EU walk in and have a baby shoppers and our system is being bled dry with their aftercare and benifits and housing needs. So, do we make our pensioners suffer for the sake of the relentless migration from EU? Could we not close our frontiers, mend our country and have a rethink on our position in Europe? Perhaps we would have more time for the tax paying public!

- Maria, London, 26/03/2010 14:18
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Dear David Cameron.

You may not know it, but even the Tories rob old age pensioners, and have always robbed them since the Thatcher days etc; and Labour are only copying you because the wealthy do not like old age pensioners at all, except at general election times etc.

Now dear David; please tell us all what you will do for British old age pensioners; that is any different than what New Labour does and has done since Thatcher’s days etc?

Be honest Dave, you and New Labour are a dead loss with everything from the EC to expense account frauds, and kissing bankers bums, all you can do though, is get away with your stealing in British Courts.

I won’t mention immigration, crime, or anything else for that matter; because you are too green to understand matters of Government etc.

I just wish we had Noddy or Muffin the Mule running for election, I would prefer either of them to you or Gordon.

Good Luck though, just a pity for the rest of us, as its Hobson’s choice for the rest of our tired and worn out Nation.

- Mickinlondon, london, 26/03/2010 14:10
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What George Osborne forgets to mention is that inflation is expected to reduce again to 2% before the end of the year, not the governments figures, but a prediction from leading economists. I am a 72 year old pensioner, whose income will be affected, but I am minded of the government pledge to continue with the increase in heating allowance for all pensioners over 60, which is worth £250 a year. We also enjoy free eye tests, free bus travel and other perks, which haven't been removed. I am in receipt of a Civil Service pension, and a Local Government pension, both of which were not increased last October because the inflation rate was -2%. However, the government pension will be increased by 2.5% this year, despite last September's minus figure. I am not complaining, nor are any of my retired friends. We are grateful for what we do get, and are content in the knowledge that for those pensioners who are not as fortunate as us, the government will step in with generous assistance if they need to, much as they did with the cold weather payments to less well-off retired people. I wonder if all these additional benefits, which many people now take for granted, would be preserved under a Conservative government.

- Val Daniels, Mijas Costa, Spain, 26/03/2010 14:07
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Labour has already screwed up Private Pension Plans. This further raid is only going to cause greater pain to those who tried to plan for their retirement. He has already stopped the pension providers re-investing the Dividend Tax Credit (if truth be known one of the other reasons why Equitable Life Failed), and now threatening to means test the State Pension.

So many have paid (compulsorily)in to the Government Pension Scheme via National Insurance to find that they will not actually receive a pension at the end. And then the Government have the nerve to criticise the Private Pension Providers.

Whilst no great fan of Thatcher, at least she did see the bombshell about to go off after 2025, when there would be more retired than working, and the Government (of whichever colour) would not be able to survive. Now Labour come around, rape everybody's savings, taxed our pensions and then sold all our gold !

The days when Labour were the workers' friend have long gone. Labour are too busy lining their own pockets, and have screwed the people they claim to help.

The trouble is what have the other two parties got to offer?

The biggest threat we have at the next election is a low turn-out as that could let any lunatic fringe party in.

- The Debt Collector, Chelmsford , England, 26/03/2010 13:47
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Why doesn't Osborne take the lead and tell people that unemployment will rise for at least 2/3 years whilst the economy slows down due to the reduced demand.

But those who are sacrificed, for the greater good, can rightfully ignore the abuse, of being lazy and idle scroungers, thrown at them from those lucky enough to still have jobs, even if the new Tory government forgot about who put them on the dole queue and then as a new policy start blaming the unemployed for not trying harder. Sound familiar.

- Tom, London, 26/03/2010 13:28
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Of course he has finally done his maths.

But with GO's own version of deep and painful recession extending double dipping non recovery remedy will obviously not effect anybody at all.

GO should continue practising his maths.

- Philip, London, 26/03/2010 13:15
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