Public sector monster needs to be tamed

Andy_L

Intoodeep wrote: »

On Panorama last night they claimed that £1 in every £5 going towards Public Sector spending is for Pensions...........and its not going to decrease is it.

Having finally got round to iPlaying the prog, Panorama said the Tax Payers Alliance claimed it. However as said before (possibly in this very thread) the TPA are being disingenuous.
Their claim is that local gov pensions account for 20% of your CT bill, implying that abolishing them would reduce your bill by a 1/5th. However that assumes that only CT is used to pay the pension, none of the money from business rates, Central gov etc is used to pay them.

RobertoMoir

Andy_L wrote: »

Having finally got round to iPlaying the prog, Panorama said the Tax Payers Alliance claimed it. However as said before (possibly in this very thread) the TPA are being disingenuous.
Their claim is that local gov pensions account for 20% of your CT bill, implying that abolishing them would reduce your bill by a 1/5th. However that assumes that only CT is used to pay the pension, none of the money from business rates, Central gov etc is used to pay them.

As has been said before, the whole thing is very complex. Both how it is funded, the problems with the schemes, the costs of changing these schemes and any possible solution are all tremendously complex.

But acknowledging that doesn't make for good daily mail headlines or forum rant fodder.

Georgie4

donaldtramp wrote: »

Yup, and waving our hard earned tax in our faces.

Reading your threads it could easily be thought that public sector workers don't pay and tax or any pension contributions - we simply get money handed out to us :rolleyes:

Geoffo_M

Georgie4 wrote: »

Reading your threads it could easily be thought that public sector workers don't pay and tax or any pension contributions - we simply get money handed out to us :rolleyes:

I have had my suspicions about this for a long time. Thanks for confirming it

Georgie4

Geoffo_M wrote: »

I have had my suspicions about this for a long time. Thanks for confirming it

So we pay no tax ?;) But then we all earn Sooooooooo much money I would have thought that EVERYONE in the public sector was in the 40% tax band:rolleyes:

Old_Slaphead

Here's a good one - independant pensions consultant (partner at PwC) says even the funded LGP schemes are facing a £100bn funding deficit as the funding only covers 57% of potential liabilities.

Local Gov't Minister says they are "fair and affordable" - obviously for scheme members but NOT council taxpayer in general as the underfunding represents a potential annual additional CT of 15-30%.

http://www.publicfinance.co.uk/news_details.cfm?News_id=60050

Hopefully the Government in power after the next election will have a serious look at the affordability of these and the unfunded public schemes.

Before anyone gets on at me - I'm quite happy that these schemes continue PROVIDED we have same schemes in private sector. That means private employers being obliged to pay 20% into employees pensions.....just think what that will do to inflation and unemployment. There would probably need to be protectionism to preserve jobs within the UK !!!