In the chapter of his Pre-Budget Report headed "Building a Fairer Society", the Chancellor yesterday promised yet more consultation on pensions reform. The Green Paper will be published on 17 December, alongside "radical" proposals emerging from the Inland Revenue simplification review. Although he gave few pointers as to what these might cover, Mr Brown confirmed that tax-free lump sums and existing tax reliefs for pension contributions by employees, employers and the self-employed would both remain. Proposals to "make the annuity market work more efficiently" (meaning more product choice and flexibility) will be included in the Government consultation, which is to focus on simplification of the eight different tax regimes and sets of rules limiting pension contributions and benefits.

As a growing consensus has developed among industry commentators about what should be the essential principles of the UK’s future pensions strategy, fears have also arisen that once again a great opportunity is about to be missed. While the Chancellor’s assurances about tax reliefs will be widely welcomed, the Secretary of State for Work and Pensions has apparently already ruled out abolition of contracting-out and radical reform of the state pension system (many people’s primary targets if real simplification is to be delivered).