Brown faces vote of No Confidence over pensions fiasco

3.06.00pm UTC (GMT +0000) Tue 17th Apr 2007

Gordon Brown [© Crown Copyright 2005]

The government faces a double assault over their pensions failure in Parliament. Tonight, Gordon Brown will face a vote of no confidence in the Commons over his 1997 decision to scrap tax relief on pension funds. The Tory motion has Lib Dem support but is almost certain to be voted down by Labour MPs. Tomorrow, Mr Brown risks further embarrassment if the government suffers defeat over a cross-party attempt to amend the Pensions Bill to secure improved compensation for the victims of collapsed occupational pension schemes.

ABOLITION OF TAX RELIEF ON PENSION FUNDS: Vince Cable, Liberal Democrat Shadow Chancellor said "Gordon Brown's desire to increase taxes through the back door rather than being honest has resulted in a great deal of damage to private and occupational pension funds. We said at the time that taxes should be raised openly and honestly. Gordon Brown must acknowledge that he made a serious mistake. He got it wrong and he should apologise to all those pensioners who are now out of pocket."

PENSIONS BILL - David Laws MP said "The government has consistently been found to be guilty of maladministration, yet it has had to be dragged kicking and screaming towards a proper package of compensation. This week MPs have their best opportunity to date to end this long-running farce. Those who have lost their pensions will not forgive MPs who do not back a fair compensation package."