The issue surrounding NHS pensions also featured in the Lib Dem’s pledge list. The party said it would “listen and act” on the pensions crisis that was “driving away our most experienced clinicians and worsening waiting times and the workforce crisis."
The party did not outline further details on its plans in this area.
It emerged in December that the number of members leaving the NHS Pension Scheme was five times higher than that seen by other public pension funds, most likely because of the taper on the annual allowance.
Introduced in 2016, the tapered annual allowance gradually reduces the allowance for those on high incomes, meaning they are more likely to suffer an annual tax charge on contributions and a lifetime allowance tax charge on their benefits.
This week the government introduced emergency measures to stop doctors from cutting their hours to avoid pension tax, saying it would cover the cost of any tax bills in the 2019/20 financial year.
Tom Selby, senior analyst at AJ Bell, said: “Although political parties acknowledging the pension tax regime is exacerbating strains in the NHS is good news, nobody seems willing to back the obvious solution – namely scrapping the annual taper altogether. This is somewhat perplexing.
“It may be that the major parties simply don’t like the electoral optics of removing something which places an extra tax burden on higher earners. But with patients’ lives potentially being put at risk, we need politicians to show real leadership in this area.”
The Lib Dems also proposed more regulation in financial services to encourage green investments.
This included requirements on pension funds and managers to show their portfolio investments were consistent with the Paris Agreement alongside new powers for regulators to act if banks and other investors were not managing climate risks properly.
Earlier this week the Green Party pledged a radical overhaul of the tax system while offering a number of pensions solutions.
imogen.tew@ft.com
What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.
