Almost immediately after Labour came to power in 1997, Chancellor Gordon Brown announced a package of tax reforms that are frequently described as a “£5 billion stealth tax” on pension funds. The reforms had a rationale to try to stimulate growth in the economy. This makes the actual cost of the reforms difficult to determine, as it is impossible to tell whether the reform helped the economy or not, and to what extent.

This Briefing Note shows that although the cost is uncertain, it is likely to be significantly less than £5 billion per year. 


To download Briefing Note 22, please click here.