With the backing of the prime minister, chancellor Gordon Brown has spoken out in defence of his controversial move to scrap tax credits for pension funds.

Speaking at a press conference in Glasgow and flanked by Tony Blair, he insisting it had been the best decision for the long-term health of the economy.

Brown said the measure had been 'the right decision to make. It was the right decision for investment, and it was the right decision for the future of our pension system, and it was the right decision for the future of our economy’.

The move was aimed at attempting to silence growing criticism of the 1997 measure, which has seen the opposition claim that it had damaged the pensions of millions of Britons by reintroducing a £5bn tax bill to pensions funds.

The CBI has accused the Treasury of using spin to suggest it supported the tax scrap, when it in fact, did not.

Further reading:

Brown under fire over CBI tax credit claim

Brown ignored tax credit pension warnings

CBI objects to scrapping of pension tax credits