Budget dents shares in one of Hove’s biggest employers

Shares in one of the biggest employers in Hove lost more than 10 per cent of their value after the budget today (Wednesday 19 March).

George Osborne, the Chancellor, effectively announced an end to compulsory annuities for people with occupational pensions.

Legal and General, which employs hundreds of staff in offices next to Hove Park, is one of the leading providers of annuities to British pensioners.

Shares in L&G fell 19p from 230p to 211p, down more than 8 per cent at the close, having fallen to below 198p at one point after the Chancellor sat down.

Annuities traditionally provided a secure income for pensioners but, in a climate of low interest rates, have become increasingly unpopular.

Last month in response to a consultation L&G said: “We believe the pension annuity remains the most appropriate choice for many consumers and if consumers shop around they can obtain good value for money along with the reassurance of a secure lifetime income the annuity provides.”