Labour's LTA plans?

RogerPensionGuy

I notice this week that Labour's shadow chancellor has confirmed a U turn on their plan to reintroduce banker's bonuses, see link below.

I've googled about the LTA and cannot find any new news items saying they will do a U turn on the LTA. 

Just wondering if Labour have commented on their promise to reintroduce the LTA or anything else to do with pensions like the AA or similar?
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https://www.bbc.co.uk/news/business-68145720

hugheskevi

They haven't said anything, although they had the opportunity to say something when they published their Financing Growth and Plan for Financial Services on 31st January.

The fact nothing was included may be an indication that perhaps they do not intend to reintroduce the LTA.

QrizB

RogerPensionGuy said:

I notice this week that Labour's shadow chancellor has confirmed a U turn on their plan to reintroduce banker's bonuses, see link below.

For the benefit of anyone else reading this thread and feeling confused, Labour have U-turned on their plans to reintroduce A CAP on bankers' bonuses.

They do not (and did not) have a plan to pay bonuses to bankers.

El_Torro

My personal opinion is that Labour will not mention it again and hope that most people forget that they did say they would reintroduce the LTA. We'll see what happens if Labour win an election later this year.

Doctors and many teachers would not be happy with the reintroduction, so Labour would have a bit of a fight on their hands if they were to bring it back. Especially if they brought it back at more or less the same level it was when it was abolished. 

ColdIron

I think that at this stage of the election cycle their plans are, let us say, 'fluid'. They can afford to face both ways and remain uncommitted for a while yet. Perhaps not a terrible tactic. We will have to wait and see what coalesces

horsewithnoname

It seems that anything NuLabour say they will do can be taken with a pinch of salt, because they’ll doubtless change it again. 

RogerPensionGuy

hugheskevi said:

They haven't said anything, although they had the opportunity to say something when they published their Financing Growth and Plan for Financial Services on 31st January.

The fact nothing was included may be an indication that perhaps they do not intend to reintroduce the LTA.

Maybe, but if they feel they needed to do a big U turn on bankers bonuses, why didn't they do a bit more putting their current views and intentions on stuff they said was totally unacceptable and they would reintroduce, stop or freeze items, like emergency forstalling pension transactions until they put in place the changes they were going on about. 

My current view is they will just continue the silly pensions ⚽️  played with a 🏉 ball to allow no sensible planning. 

dunstonh

RogerPensionGuy said:

hugheskevi said:

They haven't said anything, although they had the opportunity to say something when they published their Financing Growth and Plan for Financial Services on 31st January.

The fact nothing was included may be an indication that perhaps they do not intend to reintroduce the LTA.

Maybe, but if they feel they needed to do a big U turn on bankers bonuses, why didn't they do a bit more putting their current views and intentions on stuff they said was totally unacceptable and they would reintroduce, stop or freeze items, like emergency forstalling pension transactions until they put in place the changes they were going on about. 

My current view is they will just continue the silly pensions ⚽️  played with a 🏉 ball to allow no sensible planning. 

They are in opposition.  All the need to do to win the next election is not saying anything, keep Angela Raynor, Emily Thornbury and the others quiet who are prone to putting their mouth before their brain and they have won the election.

My view is that they will not reintroduce the LTA. When they said they would, they hadn't realised that there was still a cap on TFC.  And since then every public sector union/group has come out and said they want their staff to have LTA opt outs as well.     It would be a political nightmare to reintroduce it for such a tiny amount of tax that it would generate.

Albermarle

I've googled about the LTA and cannot find any new news items saying they will do a U turn on the LTA. 

I think you are taking too seriously the initial reaction by Labour to the abolition of LTA.

The announcement by Jeremy Hunt of a concession to pretty well off pensioners was unexpected.

How else would you expect a left of centre party to react other than by objecting to it, and saying they would overturn it. It was a natural knee jerk reaction and not a well thought out policy. 

So I do not think they have anything to U turn on, only a couple of things said in the heat of the moment.

Albermarle

horsewithnoname said:

It seems that anything NuLabour say they will do can be taken with a pinch of salt, because they’ll doubtless change it again. 

Unlike the current Govt of course   

RogerPensionGuy

The link below has a nice picture of ⚽️ pensions since 2006, funny that when Labour introduced this stuff in 2006 the LTA was possibly being treated in a sensible fashion until 2010 when Labour took a back seat, then Conservatives kicked the LTA of 1.8M to just 1M, then 1.73M, then froze it, then decided to bin it.

After Conservatives binned the LTA in April 2023, then Labour said they will reintroduce it.

If Labour wants to ensure winning the next election and by a good majority, I don't understand why they wouldn't say they doing another U turn on their LTA comments, as an LTA comment U turn would not loose them any votes, but saying nothing and people worried they will reintroduce it and possibly apply pension forestalling rules immediately will lose them votes.

I will get some beer and popcorn ready for the current chancellors event on the 6th of March this year.
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https://www.thisismoney.co.uk/money/pensions/article-11912085/The-annual-lifetime-allowance-pensions-explained.html