General Election 2019: Lib Dems

Anthony Murphy

Posted on: 27th November 2019

Earlier this month, we posted AJ Bell’s thoughts on the Green Party’s pension proposals and today we look at the Liberal Democrat’s manifesto and what they propose to do in Financial Services and how it could affect you.

State Pension

Their headline pension policy is to retain the triple lock on the state pension, which ensures it rises in line with the highest of average wage growth, prices or 2.5 per cent.

Given that the WASPI campaign and the plight of 1950s women have been at the forefront of the national consciousness this year, it is unsurprising that it has made an appearance in both the Green’s and Lib Dems manifestos. However, the Lib Dems have been vague in their policy stating that they ‘Ensure that the women born in the 1950s are properly compensated for the failure of government to properly notify them of changes to the state pension age, in line with the recommendations of the parliamentary ombudsman.’


From a personal taxation perspective, their headline policy is to abolish the Capital Gains Tax-free allowance and bundle both capital gains and income (such as salaries) into one single allowance. However, there is no clarity as to the level of this allowance or whether rebalancing investments would be included.

A 1 per cent increase to all income tax bands is proposed to raise £7 billion per annum to fund the NHS and social care services. This proposal omits Scotland as they have control over their own income tax laws. It is also not known how this would integrate into the proposals above to consolidate Capital Gains and Income together.

There is some good news for the self-employed as the Lib Dems wish to ‘Expand the rights and benefits available to those in insecure forms of employment, such as offering parental leave and pay to the self-employed’

Author’s thoughts

From a financial service perspective, there is a little policy but enough to make enough of an impact. We do not know how far these policies will go with the little concrete detail noted in their manifesto – which can be found here – I am sure most people would be willing to spend an extra penny in the pound to ensure their elderly family members are suitably cared for in later life, hopefully, relieving some of the financial burdens on their families.

Let Haven IFA prepare your pension for any political climate

However, manifestos and the reality we will face on December 13th when a new government is announced will probably be two very different things, so we air on the side of caution. To ensure you save wisely for retirement, no matter the political climate, seeking independent financial advice is crucial. Get in touch with Haven IFA to see how we can help.