HC 1189, Thirteenth Report of Session 2013-14 - Report, Together with Formal Minutes Relating to the Report
- House of Commons - Treasury Committee
- TSO (The Stationery Office)
The report 'Budget 2014 (HC 1189)' makes recommendations on pensions, savings, HM Revenue and Customs (HMRC) debt recovery powers and housing.
The greater flexibility and choice provided by the proposed pension reforms is welcomed. The 'guidance guarantee' is an important part of making sure that consumers benefit from increased choice; however, it should be measured against a set of recommended principles to ensure its effectiveness. The pensions reforms are also likely to lead to financial innovation. Following the financial crisis, and the mis-selling scandals, the reputation of the industry is still under scrutiny.
Double taxation has long been a deterrent to some forms of saving, but with the enhanced flexibility for those saving, there may now be scope in the long term for bringing the tax treatment of savings and pensions together, to create a 'single savings' vehicle.
The Committee regards the proposal to grant HMRC the power to take money directly from people's bank accounts as extremely concerning. Exceptional powers such as this require prior independent oversight.
The Help to Buy scheme could raise house prices, at least in the short-to-medium term, and there is also the risk that withdrawal of Help to Buy may have a distorting effect on the housing market. The need to address these difficulties places a particular responsibility on the Financial Policy Committee, as well as the Government, for detecting and addressing the financial stability risks arising from the housing market.
|Format||Paperback||Published||09 May 2014|
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