DAVE CAMERON / ALAMY News Budget includes cuts, sugar tax and competition Pension jargon baffles consumers Citizens Advice has revealed that many pension terms used in the industry confuse consumers, with flexi-access drawdown, open market option and safeguarded benefits some of the more confusing terms. Citizens Advice research found that 27 per cent of people with defined contribution pensions feel that they dont understand their pension plan. The national charity, which delivers the faceto-face channel of Pension Wise, said that using simple, standard language to describe industry products would help people to understand their pensions. Some people were also unclear about terms that appeared more straightforward, putting them at risk of missing the best pension options. Gillian Guy, chief executive of Citizens Advice, said: Pensions can feel like a foreign language for many people. If the pensions industry took the simple step of getting rid of complex language, it would go a long way to help people get on the right track towards a more financially secure retirement. Further cuts of 3.5bn to local government spending and a new sugar tax on soft drinks production were among a raft of measures announced during the 2016 Budget, delivered last month by Chancellor George Osborne. The cuts to public spending in 2019-20 will be delivered through another departmental efficiency review, while the new sugar tax is expected to raise 520m in its first year, according to Osborne. Producers and importers of soft drinks that contain added sugar will be targeted, with funds raised being spent on the primary school sport premium. However, a 31m investment to tackle illicit tobacco seizures by Border Force and intelligence officials will be made. Legislation was also set out giving Ofgem more power to set strategy and intervene in the energy market to encourage competition, making it easier for new companies to enter. A review of energy supply licence conditions will be undertaken by the Department of Energy and Climate Change (DECC) and Ofgem. A new cost-comparison measure for the telecoms sector will also be developed by Ofcom, while a consultation on reform to improve competition in legal services will take place. Crackdowns on rogue Claims Management Companies (CMCs) and VAT-evading online retailers were also announced, with responsibility for CMC regulation being handed to the Financial Conduct Authority, which will cap the amount CMCs can charge. A due diligence scheme is also set to be introduced for fulfilment houses, while HM Revenue and Customs will crack down on online tradersavoiding VAT, in efforts to protect the UK market from unfair onlinecompetition. It was also announced that statutory financial guidance providers including Money Advice Service and Pension Wise will be scrapped andrestructured. And while duty rates on beer, spirits and most ciders will freeze this year, tobacco products will increase by two per cent above inflation, with an additional three per cent rise in hand-rolling tobacco duty. Wedding venues advised to play fair The Competition and Markets Authority necessary change their terms to fit with (CMA) has advised more than 100 consumer protection legal obligations. wedding and event venues that large Significant upfront payments and any large event can be stressful. Businesses need to treat their customers fairly and should not require deposits and cancellation charges could unfair cancellation terms can result unjustifiable, non-refundable deposits breach consumer protection law. in considerable loss to consumers, and the or impose unreasonable cancellation CPP has been considering the terms used charges, which could mean customers by businesses in their consumer contracts. lose a significant amount of money if they The CMA has distributed letters on behalf of the Consumer Protection Partnership (CPP), recommending that Nisha Arora, CMA senior director, businesses should review and where consumer, said: Planning a wedding or change their mind about the venue or have to call off the event. The statutory code for poultry welfare will be revoked on 27 April and new industry-led guidance, produced by the British Poultry Council (BPC), will take its place. The move is part of wider regulatory reform in the livestock sector, which will reduce burdens on trading standards and the Department for Environment, Food & Rural Affairs (Defra) after continued funding cuts. In a statement, the BPC said it was pleased to be the first industry to review the welfare guidance, and that it plans to update the duck and turkey codes in 2017. The news was revealed after a Freedom of Information request by The Guardian, which voiced fears that any move to allow the industry to inspect and regulate itself could lead to national scandals, such as BSE, salmonella in eggs, and foot and mouth. While CTSI lead officer for animal health, Stephanie Young, says there are understandable concerns, she urged people to remain open-minded. Id like to see regulatory control but, in reality, industry leaders know their industry and its standards best. With the best will in the world, when you have selfregulation... you will find that some individuals exploit it... But just because the regulator doesnt produce the code, it doesnt mean [the code] wont be responsible. She added: We have to be realists. There have been 20 per cent cuts to Defra, and cuts to trading standards. The government wants to reduce red tape and ensure ownership. However, approval and endorsement by government is crucial as, without this, multiple publications may be placed in circulation by various industry leaders, which may lead to inaccurate or conflicting advice being given and a lack of clarity on what the expected standards are. This could confuse animal keepers and compromise enforcement. Defra confirmed that the BPC has produced draft, non-statutory guidance on how to comply with welfare legislation for meat chickens and breeding chickens. The spokesperson added: No changes are being made to farm animal welfare legislation or the strict enforcement and penalties that apply. SERGEY BOGDANOV / SHUTTERSTOCK Government set to repeal animal welfare codes