THE Chancellor in his ‘wisdom’ has reduced the tax allowance of pensioners.

But what is not realised is that pension companies are forced to buy government bonds/gilts.

The reducing value of these bonds means pensioners in effect are subsidising the low interest rates the Government and public borrowers pay.

The Government’s action will deter many from having private pensions.

In the end it means interest rates will soar for all including the Government.

As Mark Twain once said: ‘Before you take a fence down, ask why it was put up in the first place’!

GLYN LIMMER, Roosevelt Road, Long Hanborough