Commenting on today’s Budget, Huw Evans, ABI Director General, said:
No change in the rate of Insurance Premium Tax (IPT)
“Millions of insurance customers who do the right thing and take out insurance will be pleased to see that the rate of IPT has not been raised in this Budget.
The Government should consider reducing IPT, as it is a regressive tax that hits the poorest households hardest.”
On the increase in Government investment in flood defences
“We welcome this much-needed extra investment in Britain’s flood defences. The investment of £5.2billion over the next six years will come as some relief to those communities across the country at flood risk who live with the distress and disruption that flooding causes. However, this still falls short of what the ABI has said is needed, £1.2bn a year, to meet the growing risk of climate change. We look forward to seeing further details on this announcement.”
Commenting on other issues of interest, Yvonne Braun, ABI’s Director of Policy, Long-Term Savings and Protection, said:
Taper Annual Allowance
“Short of abolishing the overly complex Tapered Annual Allowance, these measures are the next best step. However, further tinkering with pensions tax relief is not a long-term solution. The system needs fundamental reform.”
Net Pay Consultation
“We warmly welcome this call for evidence as a first step towards closing the yawning gender pensions gap. It is unacceptable that 1.75 million low earners are currently missing out on pensions tax relief, three quarters of whom are women. We look forward to engaging with government as they work towards a solution.”
Increase in annual limit Junior ISAs and Child Trust Funds
“We welcome the increases in the annual limit to encourage a new generation of savers and build good savings habits to last a lifetime.”
-ENDS-
Notes for Editors
Enquiries to:
Malcolm Tarling 020 7216 7410 Mobile: 07776 147667
Laura Dawson 020 7216 7338 Mobile: 0772 5245838
Su Crown 020 7216 7412 Mobile: 0772 5245297
- The Association of British Insurers is the voice of the UK’s world leading insurance and long-term savings industry.
A productive, inclusive and thriving sector, we are an industry that provides peace of mind to households and businesses across the UK and powers the growth of local and regional economies by enabling trade, risk taking, investment and innovation.
- An ISDN line is available for broadcast
- More news and information from the ABI is available on our web site, abi.org.uk.