Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

UK's Sunak considers cap to annual pension rise - Sunday Times

Economic IndicatorsJun 19, 2021 07:05PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Britain's Chancellor of the Exchequer Rishi Sunak meets with U.S. Treasury Secretary Janet Yellen (not pictured), in London, Britain June 3, 2021. REUTERS/Hannah McKay/Pool

LONDON (Reuters) - British finance minister Rishi Sunak is considering blocking a near 6% rise in old-age pension payments as part of a wider effort to rein in the cost of Prime Minister Boris Johnson's spending, the Sunday Times newspaper said.

Under a pension promise in the Conservative Party's 2019 election campaign, state pensions are meant to rise each year by the highest of the annual inflation rate, wage growth or 2.5%.

Due partly to distortions from the coronavirus pandemic, annual wages in the three months to April grew by an annual 5.6% - creating an extra 4 billion pound ($5.5 billion) annual cost for future pensions.

The Sunday Times said the finance ministry wanted to break the link between pensions and wages for a year.

"Pensioners are going to be doing extremely well. It's not politically that difficult a thing to smooth it out for a year," the newspaper quoted an unnamed minister as saying.

The Sunday Times said Sunak was worried too about a potential 5 billion pound annual cost for a plan on social care for the elderly due to be discussed later this week, plus extra for a new government yacht to promote British exports.

An unnamed official was quoted as describing funding for the yacht as "a complete and utter shitshow".

Asked about the report, a British government spokesperson said: "The Prime Minister and Chancellor work closely together, and have been in lockstep throughout the most challenging period any government has faced since the Second World War."

"We always ensure that all government spending provides value for money for the taxpayer."

Sunak said in a television interview on Wednesday that pensions would be reviewed later in the year.

Britain's government borrowed 300 billion pounds last year - equivalent to 14% of gross domestic product and the most since World War Two.

Sunak has repeatedly said he wants to put the public finances in a more sustainable position when the economy recovers, due to concerns about higher interest rates.

The Sunday Times said Sunak opposed raising capital gains tax. The government has already promised not to raise the main rates of income tax, national insurance or value-added tax, limiting its ability to boost revenue.

($1 = 0.7242 pounds)

UK's Sunak considers cap to annual pension rise - Sunday Times
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Lim Mag St
Lim Mag St Jun 19, 2021 10:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Silly Chancellor still suppressing British sandwiched Middle class professionals with high tax brackets whilst reluctant to introduce US Democrats Wealth taxes plans, despite successful G7 International tax summit. The already stressed Middle Working Classes & aging pensioners will continue to bear the huge deficit. Food for thoughts
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email