{"id":129432,"date":"2021-06-20T00:02:30","date_gmt":"2021-06-20T00:02:30","guid":{"rendered":"https:\/\/precoinnews.com\/?p=129432"},"modified":"2021-06-20T00:02:30","modified_gmt":"2021-06-20T00:02:30","slug":"uks-sunak-considers-cap-to-annual-pension-rise-sunday-times","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/uks-sunak-considers-cap-to-annual-pension-rise-sunday-times\/","title":{"rendered":"UK's Sunak considers cap to annual pension rise – Sunday Times"},"content":{"rendered":"
LONDON (Reuters) – British finance minister Rishi Sunak is considering blocking a near 6% rise in old-age pension payments as part of a wider effort to rein in the cost of Prime Minister Boris Johnson\u2019s spending, the Sunday Times newspaper said.<\/p> Under a pension promise in the Conservative Party\u2019s 2019 election campaign, state pensions are meant to rise each year by the highest of the annual inflation rate, wage growth or 2.5%.<\/p>\n Due partly to distortions from the coronavirus pandemic, annual wages in the three months to April grew by an annual 5.6% – creating an extra 4 billion pound ($5.5 billion) annual cost for future pensions.<\/p>\n The Sunday Times said the finance ministry wanted to break the link between pensions and wages for a year.<\/p>\n \u201cPensioners are going to be doing extremely well. It\u2019s not politically that difficult a thing to smooth it out for a year,\u201d the newspaper quoted an unnamed minister as saying.<\/p>\n The Sunday Times said Sunak was worried too about a potential 5 billion pound annual cost for a plan on social care for the elderly due to be discussed later this week, plus extra for a new government yacht to promote British exports.<\/p>\n An unnamed official was quoted as describing funding for the yacht as \u201ca complete and utter shitshow\u201d.<\/p>\n Asked about the report, a British government spokesperson said: \u201cThe Prime Minister and Chancellor work closely together, and have been in lockstep throughout the most challenging period any government has faced since the Second World War.\u201d<\/p>\n \u201cWe always ensure that all government spending provides value for money for the taxpayer.\u201d<\/p>\n Sunak said in a television interview on Wednesday that pensions would be reviewed later in the year.<\/p>\n Britain\u2019s government borrowed 300 billion pounds last year – equivalent to 14% of gross domestic product and the most since World War Two.<\/p>\n Sunak has repeatedly said he wants to put the public finances in a more sustainable position when the economy recovers, due to concerns about higher interest rates.<\/p>\n The Sunday Times said Sunak opposed raising capital gains tax. The government has already promised not to raise the main rates of income tax, national insurance or value-added tax, limiting its ability to boost revenue.<\/p>\n ($1 = 0.7242 pounds)<\/p>\n