Auto-enrolment to wipe out firms' red tape savings

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Savings made by Government offset cost of auto-enrolment. If the Government had not made these changes then employers would have been worse off. This is another example of looking at statistics in the negative and cynical way we are all to ready to do. Would anyone rather the Government not do it?

Posted by: Sam Caunt

Truth will out

I’m glad you published this – I too saw the reports in today’s papers. Unlike Mr Caunt and others in Financial Services who may percive some advantage from this woebegone scheme, I am unashamadley a fierce critic. Saying that the Government makes savings shows a lack of business acumen which I find breathtaking. Government only exists from the taxation it raises for the population, who in turn only pay it when they are gainfully employed or invest in successful companies. It is their savings and profits which are paramount for a healthy and successful economy. Governments by their nature always waste money. This scheme is nothing more than a tax on employers and employees and a burdensome and unnecessary administrative impost. If the Government of the day was serious about this scheme then it needs to offer incentives. Firms receive Corporation Tax relief on pension contributions – in this case double the relief for every £1 that the firm contributes. As far as members are concerned – full income tax relief on contributions to the scheme and no tax at all on the annuity payment at the end of the process. You then have a scheme which properly incentivises all parties and may then stand a decent chance of succeeding. As it is when all the aspects of the current plans are analysed it is very second rate, doesn’t stand a good chance of actually providing anything worthwhile and will reduce both company profits, wage levels and disposable income. This at a time when things are difficult enough to start with is raising maladroitness to an art level.

Posted by: Harry Katz