Overall reaction
Responding to yesterday’s Budget, Maggie Craig, Acting Director General of the ABI, said:
“Yesterday's Budget offers a dual route for growth – boosting long-term investment and securing a competitive UK tax regime.
We strongly welcome the two per cent reduction in corporation tax which will give the UK the lowest corporation tax rate in the G7. This is a real statement of intent that shows the UK is open for business.
“Insurers fully support the Green Investment Bank, and are uniquely placed to help as they invest for decades rather than years. We would have liked the Bank to have been able to access money markets from day one rather than wait until 2015, but we understand the reasons for a delay and welcome the additional funding.
“Progress on the taxation of foreign profits will bring the UK in line with international competitors. This is crucial for insurers as they align their businesses for massive regulatory change over the next 18 months ahead of the Solvency II regime going live in January 2013.”
Implementation of Lord Young’s review of Health and Safety
Nick Starling, Director of General Insurance and Health, said:
“We welcome the Chancellor’s promise to implement in full Lord Young’s recommendations made in his health and safety legislation review. Lord Young rightly identified how badly interpreted or misunderstood regulation, bureaucracy and disreputable claims management firms have contribute to a compensation culture.
“Implementing these recommendations will create a culture of responsible risk taking by individuals and businesses, backed by proportionate health and safety regulation, and underpinned by insurance.
“This also means a clampdown on irresponsible claims management firms. Not only do they help fuel public belief that behind every accident there should be a claim, but they add costs to the legal system, that ultimately are borne by all insurance customers.
“Lord Young’s recommendations coupled with full implementation of the recommendations of Lord Justice Jackson’s review into civil litigation, will lead to claimants getting fair compensation as quickly as possible and help to insurers keep costs affordable for customers.”
Savings
Helen White, acting Director of Life and Savings, said:
“The announcement to establish a flat-rate payment is an important move towards a simpler and more understandable pension system. It will help people plan for their retirement, stop people falling into the means-testing trap and ensure that it always pays to save. We look forward to working with the Government and other stakeholders to make these proposals work.”
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