Comments on: John Redwood criticises the Government’s approach to saving http://johnredwoodsdiary.com/2009/02/27/john-redwood-criticises-the-government%e2%80%99s-approach-to-saving/ Incisive and topical campaigns and commentary on today's issues and tomorrow's problems Thu, 09 Feb 2012 20:05:58 +0000 hourly 1 By: Mark Wadsworth http://johnredwoodsdiary.com/2009/02/27/john-redwood-criticises-the-government%e2%80%99s-approach-to-saving/#comment-11936 Mark Wadsworth Fri, 27 Feb 2009 15:24:31 +0000 http://www.johnredwoodsdiary.com/?p=3013#comment-11936 If you sincerely want the really poor to save, then even more important than reinstating interest rates to normal levels (3%? 4%?) is to scrap asset-based means testing. If somebody has £5,000 tucked away for a rainy day, whether they get £10 interest or £250 is neither here nor there - what is cruel is to reduce the benefits they would get so savagely that they are forced to live on their savings for a few weeks until they are all gone - only then can they get full benefits. In today's low-interest environment, calling for tax cuts on interest is completely missing the point. And before we cut taxes on savings income, how about cutting taxes on employment to enable people to make the money in the first place to be able to save some? If you sincerely want the really poor to save, then even more important than reinstating interest rates to normal levels (3%? 4%?) is to scrap asset-based means testing.

If somebody has £5,000 tucked away for a rainy day, whether they get £10 interest or £250 is neither here nor there – what is cruel is to reduce the benefits they would get so savagely that they are forced to live on their savings for a few weeks until they are all gone – only then can they get full benefits.

In today’s low-interest environment, calling for tax cuts on interest is completely missing the point. And before we cut taxes on savings income, how about cutting taxes on employment to enable people to make the money in the first place to be able to save some?

]]> By: oldrightie http://johnredwoodsdiary.com/2009/02/27/john-redwood-criticises-the-government%e2%80%99s-approach-to-saving/#comment-11935 oldrightie Fri, 27 Feb 2009 14:22:52 +0000 http://www.johnredwoodsdiary.com/?p=3013#comment-11935 The Bill is a mouse of a measure to handle an elephant of a problem. Excellent and good opposition speech. When oh when will this crowd see the light. The Bill is a mouse of a measure to handle an elephant of a problem.

Excellent and good opposition speech. When oh when will this crowd see the light.

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