David Cameron’s tax proposals have gone down well with North Hertfordshire pensioner savers. David has pledged to abolish income tax on savings for basic rate taxpayers and to raise the pensioners’ personal allowance by £2,000 to £11,490. One pensioner’s message to me said:
“please do something for pensioners – banks, those with mortgages, those spending on items with reduced VAT have all benefited in recent weeks – why are pensioners who form a growing percentage of voters dealt with so poorly? Interest on my savings are now heading to be less than half it was 12 months ago. How many people in work would readily accept a reduction of 50% in their income ? Would you ? You need to get no tax on savings up to a given limit for pensioners in place now.”
Nick Clegg’s knee-jerk opposition to this plan is clearly ill-judged.