The Grim Reaper v George Osbourne - Budget 2014

Mortal Mindy's picture

Imagine all the pensioners cashing in their whole pension pots to spend or invest at will in 2015.   Then imagine the massive tax receipts that George Osbourne will be able to collect. Add to this his Govts. other ill-conceived economic policies that will drive this country further into debt, whilst he and his fellow cabinet ministers continue to create an ever increasing gap between the rich and poor.  Not only will Osbourne's policy on pensions leave an economic black hole for future generations it would leave the present generation with the overburdening inevitabilty of filling the void of the vault that feeds millions of empty pensioner's purses, with no doubt after this Govts. diabolical policies from an eternal indebted treasury chest.

Not only has the Chancellor's budget 2014 took the Insurance Industry by surprise " From 2015, pensioners will have the freedom to cash in as much or as little of their pension pot as they want, removing the need to buy an annuity. In response, firms which sell such policies saw their share prices tumble. The insurance industry said the reforms presented a "significant challenge" and it was "crucial" to get them right. Chancellor George Osborne said the pension changes were part of the "most far-reaching reforms" to the taxation of pensions for 90 years. In his fifth Budget - 15 months away from the next general election - the chancellor sought to help pensioners and savers penalised by the low interest rates of the past seven years."

Helping himself more likely, as the wolf in sheeps clothing is on the prowl to collect cash while he can,  and fill his Govts. pockets from the pensioner's pots.  Osbourne embellishes the benefits of the freedom to choose how they spend their hard earned savings, by announcing that from 2015 pensioners will  have the freedom to take all of their pension 'pot' rather than the present 25%  tax free lunp sum with the remainder of the pot to be drawn down over a lifetime via an Annuity based income that is taxable over a lifetime,  the Insurance Industry (who mainly provide Annuitys) are facing some serious challenges.  And they are not the only ones.

Since savings and interest rates have been held low,  along with quantative easing devaluing the pound etc,  it has been difficult for savers and investors to get a decent return on their money.  During this time of recession or austerity, any 'disposable' income would have been very wisely invested into a pension.  A pension is deemed as safe,  a longterm investment  and something to look forward too.  Moreover for every £ 80 you invest the Govt.  add at basic rate tax another £ 20, or 20%.  So if you had money to invest, for the last five years this has been the safest and most beneficial investment you could make when parting with your hard earned cash.  Of course there were limits as to how much you could pile into your pension pot, but clearly an automatic 20% gain over the measley savings average of about 2%  was always a winner.  Here is how that works:

So, this 'surprise' announcement that may give instant gratification to appeal to the 'grey' market the implications of this are so far reaching, not only to the pension and annuity providers, but the tax implications  that it beggars belief that such an amateur and ill-conceived policy could or will even get passed through parliament.    Thankfully the 'grey' market have 'grey' matter between their ears and hopefully not all will succumb to this blatant and obvious raid on pensioners hard earned income and provision just to feed Osbournes desperate lust for taking from people's purses to fill the vaults.   

Looking for the details and the technicalities of how Osbourne's policy can be implemented is like looking for a lost soul on consecrated ground.  There are none.  What we do know is that pensions are taxable.  An annuity or life long pension provider  would release that tax over the lifetime, adding to the Govts income and receipts over that lifetime.  Under Osbourne's far reaching 'reforms' have no doubt that Tax will be collected at source, in full at the point of withdrawal creating an instant short-term fix for the Govt to collect dues that would otherwise be taken over a period of time.  HMRC forecasts and projections on incoming receipts will be totally blasted out of the water.  Hell hath no fury like HMRC.  

So whilst we look to reap what we sow, George Osbourne should  beware the Grim Reaper, he feeds on time. To contest. One is after your soul the other is after your money, and he wants it in 2015.  No contest.     

Calm down dear!!




Mortal Mindy's picture

Watching - the Pension Reforms

Lord Hutton of Furness (Labour)

My Lords, there has been a great deal of rhetoric surrounding this Bill. Some of the claims for the Bill may be far-fetched, but in one respect they probably are not. Many people have claimed that the reforms in the Bill constitute the biggest shake-up of our pension system for 100 years. If that is true, it is incumbent on the Government to have a clear plan—rather as my noble friend has indicated—for keeping Parliament abreast of the impact of those changes and reporting appropriately on it. None of us knows at the beginning of the extraordinary journey on which we are embarking what will happen and what will be the consequences of giving pension savers these significant new freedoms and flexibilities. It is quite likely that these are responsible people. They have been saving in workplace schemes, in some cases, for decades. Perhaps they are not going to blow their pension pots in a reckless spending spree at the end of their working lives. I tend to agree with that, but we simply do not know. Whereas giving choices is a great policy and one that I can support, it competes with another policy that has similar standing: that is, we must ensure that people approach and enter retirement with enough income to meet their lifestyle requirements.

As has been said by many others in the course of this debate and in another place, these two policies are, to some extent, competing with each other through the Bill. My noble friend’s amendment is really seeking to do one important thing, which is to ensure that there is a proper appreciation of the risks inherent in this approach to the new legislation and a willingness to keep Parliament informed of them. If we get this wrong, not only are we going to impoverish future generations of retirees, but there is, as we know, some risk that the costs of that will fall back on to the shoulders of taxpayers. Either of those two outcomes would be a terrible result of these new freedoms and flexibilities which, in principle, I strongly support.

I hope that the Minister will be able to respond positively to my noble friend’s amendment. I suspect he will say that there is something wrong with the drafting of the amendment. We have all been there before and we know how this process unfolds. If he is not prepared to accept the amendment I hope that he will at least give the House some indication of what reporting the Government are planning to embark on so that future legislators will be able to look back at the detail of this legislation and conclude at some point whether it is working or not. If it is not working, we will have to change it. If it is working, we will all celebrate one of the great reforms of the Government. However, it is clear at the moment that there is no indication, either in the Bill or elsewhere, of what plans Ministers have to keep Parliament abreast of the impact of these changes, given their significance and importance. It is necessary that we hear from the Minister today what the Government’s plans might be."


Mortal Mindy's picture

Budget 2015

Mortal Mindy's picture

Twonks Split - the Living Wage

Yesterday John Senior was having a good old whine about the costs of the  'Living Wage' (£9.00 per hour does not seem like a lot to some people but it does for .... )  and how it could impact small business up and down the Yorkshire Coast ...

"A Scarborough businessman says the new living wage could cause problems for businesses on the Yorkshire coast.

It's after George Osbourne announced the measure in the budget, which will see wages for those over 25 rise to £9 per hour by 2020.

John Senior, Chairman of the South Bay Traders' Association, says imposing the hourly rate is a big hike for small firms.

He also says it could mean businesses taking on less staff, laying people off and having to charge more to their customers..

Meanwhile :-) (today)

"Filey's MP says the new living wage will be a good thing, saying businesses on the Yorkshire coast should be able to cope.

Yesterday we told you about the concerns of small local businesses that the higher pay rate for over 25s announced in the Budget could lead to job losses and higher prices.

The government says the rate will rise to £9 per hour by 2020.

Kevin Hollinrake says it will be tough for some businesses, but it will still be a benefit to the economy as a whole..

He says firms will have time to adjust, as the it will be staged and the full rate won't be in force till 2020..

Kevin also says similar worries over the minimum wage were overcome - and a better-paid, more motivated workforce could increase productivity..."

NMW NMW NMW ...Eeek ba gum ...

The controversial Universal Tax Credit (UTC) (lol) system is to be rolled out across the Borough from 1st October ... bah bah

Mortal Mindy's picture

'Bilbo' Bob on Living Wage

see, Bob knows wot he's talking about :-)

"Scarborough's MP has also been talking about the government's new living wage.

Robert Goodwill has been addressing concerns from small business on the Yorkshire coast - who worry having to pay £9 per hour to over 25s by 2020 will have a negative effect on them.

Robert says similar concerns over the minimum wage never materialised.

But he also insists it's not fair for everyone else to have to support under-paid workers through tax credits, when some businesses aren't paying what they should.."

Exactly ... he mebbe daft but he aint stoopid

Oouchie ; will sneak this one in here whilst no-ones looking... ...  Planet B ...up for grabs?

Benefitz Betty's picture



"As the House of Lords prepares to vote on motions that could delay the controversial cuts by three years or scrap them altogether, ministers say peers do not have the right to block financial measures approved by the House of Commons."

"This principle was established in 1911 during the constitutional gridlock that followed a decision by peers to block the Liberal Party's "people's budget".

But nothing is ever cut and dried in Britain's fluid, unwritten constitution. And both sides are angrily trading precedents and claiming that their opponents are overstepping the mark. If they could only agree where the mark is."


Ralmho ...

"Boy, 15, arrested in Northern Ireland over TalkTalk hacking attack, Scotland Yard says"

Will that swing the vote?

The Not Contents Have it by over 300/90 odd ish yay the Govt has to think again ....
Beans on Toast :-))

 Oooh no a bit more mumbo jumbo    307 contents ... not contents 200 ish ... tis not over yet.

The Big One "to move, as an amendment to the motion in the name of the Lord Privy Seal, to leave out all the words after "that" and insert "this House declines to consider the draft Regulations laid before the House on 7 September until the Government, (1) following consultation have reported to Parliament a scheme for full transitional protection for a minimum of three years for all low-income families and individuals currently receiving tax credits before 5 April 2016, such transitional protection to be renewable after three years with parliamentary approval, and (2) have laid a report before the House, detailing their response to the analysis of the draft Regulations by the Institute for Fiscal Studies, and considering possible mitigating action."

"Lords have voted for Baroness Meacher's amdt - 307 vs 277. Right that we delay changes to tax credits until we fully understand impact"

now they onto that boring bit amount Financial Regulations & Bank of England ....

Flaming typical .... smoke n mirrors.



Mortal Mindy's picture



Hot Air:


"The ore would then travel along a permanent 18km transporting chute, over the river, out to waiting ships in the Cook Inlet."

Godzilla?    WTF  blinkers off ... oh...  PacRim Coal

& 18km is the new 8 mile ...

Cripes 2006 ... geek or greek

Mortal Mindy's picture

Osborne Found under a Bush

Women create their own problems by having a period !!!

"George Osborne says in his Spending Review speech that the money raised through the VAT payable on female sanitary products will be used to fund various women's health and support charities - an idea that he says was suggested by Colchester MP Will Quince"

Has anyone seen his belly button?

On their period;

Ah, so some more lunatics in the assylum ;-) tfft

Awwwe schucks :-)) don't ya just love a happy ending ...


Mortal Mindy's picture

Sony Takes Down Suffrage Parody

(within the last 24 hrs) Yep, HP Thanks giving .... f*ck you too  ;-))

Ah yes... if you appen to think a woman is not entitled to an opinion .... questions, sighs, cold stares 'how very dare she' echoes around the room as a mouth opens to erm actually speak ... "You're entitled to your opinion"  progress?

Get this as a fact - this woman is actually entitled to vote ;-))

Oh and btw ... as a 'grown up' I actually get to do what I want when I want and if I want .... consequences accepted. My choice, my judgement.  Not yours.


An alternative view ;-/