Keir Starmer annihilated on GB News as Christopher Biggins rages at 'disgraceful' tax move

Eamonn Holmes clashes with Christopher Biggins on GB News

GB News turned heated as Christoper Biggins told hosts Eamonn Holmes and Isabel Webster: "I don’t know how he [Keir Starmer] has the guts to get up in the morning and look at himself.

"It’s so disgraceful that these people who have paid their taxes for years and years, I would have thought, would be his big audience.

"I think a lot of pensioners voted for him," he added.

Eamonn said in response: “We have to face the fact that we are ageist. It seems as though if you have served your time and paid your bills, you don’t give these people the benefits they have earned throughout the years."

Christoper Biggins hit out at Sir Keir Starmer (Image: Getty)

The big pension tax change during the recent budget was the decision to end inheritance tax exemptions for unused pension pots passed on to the next generation.

This could have two negative impacts. Firstly, more people will decide to spend their entire pension fund quickly, leaving little or nothing for their later years.

Secondly, this measure will kill the chance to help younger generations enjoy better pensions. Currently, those with accumulated pension funds have a significant incentive to keep that money invested for as long as they can.

Present rules will see them paying tax at their marginal rate when they take it out, so they are best to keep it till a later date, until they need it later or may be in a lower tax bracket.

Keir Starmer's party have faced scrutiny for his party's plans. (Image: Getty)

When tax-advantage inheritance ends in 2027, passing on money from a pension will be taxed at 40 per cent, regardless of the size of that pension, as long as the total assets being passed on are large enough to attract inheritance tax.

In contrast to this, as long as the money someone withdraws from their pension, when added to their other income that year, totals under £50,271, they will only face 20 per cent tax.

They can even withdraw enough to add to any other income that keeps them below £125,140 that year and still only face a marginal tax rate of 40 per cent.

This means the incentive to pass on a pension to your offspring, rather than withdraw and use it during your lifetime, is reduced.

Ending the inheritance tax exemption also means younger generations have fewer pension provisions than the current system.

When a pension fund passes to a partner, it is still free of inheritance tax, but once it goes to your children, they inherit only 60 per cent of it.

Current rules mean they only pay tax when they draw down the money, incentivising them to spend it later rather than earlier. This decision will stop the potential option of facilitating better pension provisions for future generations.