Jamie Jenkins: flat rate of tax relief would still incentivise saving
Auto-enrolment (AE) would not be undermined if the Chancellor introduces a flat rate tax incentive in next month's Budget, according to Standard Life's Jamie Jenkins.
Speaking today at the annual Trades Union Congress (TUC) conference on pensions, the insurer's head of pensions strategy said it was important that any change to the tax system did not deter people from saving.
Speculation about George Osborne's (pictured above) intentions to reform tax relief has been circulating around the industry for months with many worrying he might shift the system to a more ISA like environment, although he is likely to go for the less radical option of a flat rate of tax relief.
Jenkins said: "A structural move to a flat rate would not interrupt AE. It is important that an incentive remains [for people to save]."
It would also be difficult for people to believe the government would not meddle with pensions policy in the future if it changed so dramatically in March, he added.
Some in the industry have questioned whether the government can be trusted on tax relief.
Steve Webb recently warned of the dangers of implementing a pensions ISA, describing it as George Osborne's "Gordon Brown moment."
The government launched a consultation into tax relief at last month's Summer Budget.
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