Are pensioners paying for corporation tax cuts?
The Budget policy costing document reveals that the additional cut in corporation tax is set to cost us £880 million by 2015-16. But at the same time, the rather opaque announcement that ‘age-related allowances’ for pensioners will be frozen and restricted to existing recipients from April 2013 will raise over £1 billion by the same date. Has the Chancellor really paid for tax cuts for big business (whose record surpluses are currently worth 50% of GDP) by making pensioners pay more tax?