The Chancellor is due to receive a “windfall” of £25bn if plans for the Government to take over the Royal Mail pension fund go ahead.
In a sleight of hand that would make David Blaine blush, this will enable the Government to take credit for £25bn of assets but, for accounting purposes, ignore the associated £35bn of liabilities (in respect of pension benefits covering over 400,000 current and retired employees).
Nice one George.
Thanks to Alan Smith of First Actuarial for this excellent report
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