A Financial Planning firm has hit out at the costs facing advisers to fund the new retirement service pledged by the Government in the Budget, labelling it the 'guidance tax'.

Under the proposals laid out by the FCA, advisers look set to be paying 20% or 30% of the levy, though the regulator has invited alternative suggestions.
LEBC said that under the proposed consumer guidance, the cost benefit analysis provided only includes the cost to Government, not the cost of the financial services sector, which is being levied to pay for it.
Kay Ingram, director of individual savings and investments at LEBC says: "The IFA sector of which we are part is expected to pay 30% of the cost of this guidance and have zero control or participation in delivery.
"We are calling this the 'guidance tax' and believe that if IFAs and their clients are to be taxed to provide for guidance to be given to retirees, then we should have some representation in how the guidance is delivered. No taxation without representation.

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"We find it odd that IFAs will be expected to pay a levy for the cost of this service but are not considered suitable to offer guidance to the public."
The Pensions Advisory Service and The Money Advice Service have been chosen as the two so called delivery partners for the scheme.
Ms Ingram said: "We would prefer to pay our share of the costs of this ambitious plan in kind by delivering talks and answering generic questions in question and answer forums, for example, rather than being asked to pay money for a service over which we will have no say in delivery and no control of costs."
Earlier this week, MGM Advantage called for the Government to pay the entire costs of the new scheme for its first year.
The FCA consultation on the guidance service closed on Monday.