ABI: Full Budget reaction on IPT, Lifetime ISAs and CMC regulation
Responding to today's Budget, Huw Evans, Director General of the Association of British Insurers (ABI) made the following comments.
On the increase to Insurance Premium Tax:
"A further increase in IPT is disappointing news.
“Increased investment in flood defences is vital but should be part of core Government expenditure, not an afterthought paid for by raising taxes on people and businesses who do the responsible thing in protecting themselves through insurance. We will be examining the detail closely to ensure the revenue raised is actually spent on new flood defence schemes."
On the new Lifetime ISA:
“Anything that helps people to save more should always be welcomed. But for most people’s retirement outcomes, employer contributions paid into a workplace pension will be critical.
“The test for success for the lifetime ISA will be whether it increases overall retirement savings and does not undermine the auto-enrolment programme; this must not be a backdoor to pension ISA. For the new system to work it will be vital that people understand their options fully and can access financial information to ensure the best outcome for their individual circumstances.”
One the decision to move CMC regulation to FCA:
“Moving the regulator to the FCA, as the ABI has asked, is absolutely the right thing to do and a major reform. For too long the regulation of claims management companies has not been fit-for-purpose, leaving the public at the mercy of unscrupulous firms who make nuisance phone calls and encourage frivolous and fraudulent claims. It should go a long way in driving the cowboy operators out of town and helping to ensure honest customers don't end up footing the bill for their dodgy practices.“