To ask the Chancellor of the Exchequer what estimate he has made of the effect of proposals in the 2007 Budget on the pensions of (a) serving and (b) retired Gurkhas; and if he will make a statement. (134490)

Budget 2007 announced a rebalancing of taxation on to polluting activities, and tackling avoidance. This has allowed the Government to simplify the tax system for all and to offer more support for work, families and pensioners.

The overall effect on Gurkhas resident in the UK will be dependant on the interactions between the different elements of all the reforms contained in the Budget, and the household circumstances of each individual.