Proposals for how the Pension Protection Fund should be funded will warn directly linking the likelihood of a fund going bust to the payment of a higher fee will be unworkable.
The Times says the National Association of Pension Funds, will argue that while some companies may be “thousands of times” more likely to default on pensions promises, it makes no sense to charge them thousands of times more in PPF fees than other companies.
This view puts the NAPF on a collision course with businesses arguing fees should be calculated according to the risk of any particular scheme failing.
But, the NAPF counters that it is unrealistic to expect weaker companies to pay more, which could have the effect of driving them into further trouble in the first place, perhaps leading to a call on the cash in the PPF.
Stronger companies must expect some form of cross-subsidisation, the NAPF will say.
The former carries news of a huge shift in the burden of taxation away from companies on to individuals, who now account for 73.5% of the UK tax take, according to readings of figures from National Statistics.
And, with increasing pressure to increase taxes to pay for more government services, chancellor Gordon Brown is unable to reverse the shift given, for example, that many EU member states are now offering corporate tax rates of 0%.
At least Brown can look forward to one new source of income: deregulating gambling could put an additional £3bn into the Treasury kitty says The Scotsman.
Current gambling expenditure in the UK of £9bn brings in about £1.3bn in tax revenues, but this could jump to £3bn if the gambling industry expands to a turnover of £17bn, predicted if Las Vegas-style casinos come to town.
”Hidden in the government’s Regulatory Impact Assessment is a prediction that the Gambling Bill will increase government revenue from gambling. Specifically, it expects higher revenues from gaming machines, from casinos and from the increased ability to tax remote gambling,” the paper writes.
ENERGY INFLATION IS here to stay says the International Energy Agency, because of greater reliance on countries that are politically unstable, such as Saudi Arabia and Russia, the FT reports.
From averaging less than $20 per barrel in real terms in the 15 years to 2000, oil is now predicted to move up to $27 by 2010, heading for more than $34 by 2030.
OPEC’s share of the world oil market could rise above 50% by 2030, far higher than when the cartel imposed oil price hikes in the 1970s.
”The IEA warning is a clear departure from its previous attempts in the last months to calm the market,” the FT says.IFAonline
Chris St John to take over £3bn UK Select Opps
The majority of financial advisers (85%) believe the number of self-invested personal pension (SIPP) providers will continue to fall in the coming year, according to Dentons Pension Management research.
Short-term noise or something sinister?