PM defends Brown over pensions

PM defends Brown over pensions

Tony Blair today came to Gordon Brown's defence as the launch of Labour's election campaign risked being eclipsed by the controversy over the chancellor's changes to the taxation of pension funds.

The prime minister told BBC Radio Scotland that the 1997 decision to impose a £5bn-a-year pensions tax was the right one, and taken by the government as a whole. "I fully supported the decision then. I believe it was the right decision then and the right decision now," he said.

Mr Blair stood by Mr Brown on a campaign trip to Scotland, where the SNP is expected to overtake Labour as the largest party in the Scottish parliament in the May 3 elections.

Labour is also expected to suffer heavy losses in the local elections, with the latest poll in today's Independent giving the Tories an eight-point lead.

Praising Mr Brown, who he said had "an amazing record as chancellor", the prime minister sought to focus attention on the risk to the Scottish economy of a SNP government in Scotland, and the party's demand for a referendum on independence.

"The important thing is this: the moment you've got the SNP government in charge and you've got that referendum over the next few years then you inject uncertainty and instability into the situation," he said.

Asked if Labour could turn around five months of negative polls in the five remaining weeks to polling day, he replied: "I think there's every chance but I mean you're right there's a.....continued below

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big fight and that's what politics is about."

Mr Brown was in Nottingham launching Labour's local election campaign first thing but joined Mr Blair for the Scottish launch.

Their joint appearance was mocked by the SNP's deputy leader, Nicola Sturgeon, who said: "A joint appearance by Tony Blair and Gordon Brown must be Labour's biggest own goal yet of the campaign.

"We know that Mr Blair is a major electoral liability for Labour as the man who took the country into an illegal war.

"And now Gordon Brown's appearance will mire Labour's campaign in the pensions crisis."

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