Insurers await UK Budget Report

Insurers are waiting to see the impact of tomorrow’s Budget on insurance premium tax.

Steve White, head of compliance and training at the British Insurers Brokers Association said: “We have been working very closely with the revenue, we have made some suggested changes to the IPT legislation and we are hopeful that the changes we have suggested will appear in the budget.

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"The changes that we have suggested would bring the legislation more in line with the problems that they had with Homeserve that they are trying to address.”

Barbara Bradshaw, chief executive of the Institute of Insurance Brokers said that it is hopeful it will get the resolution that the organisation has been working towards.

In its budget predictions Heath Lambert said that its fear is that IPT will rise to 10%, but it wish is for it to stay at 5% as any increase would have a direct impact on all UK household budgets and would add to the cost of healthcare provision.

A spokesman for the Association of British Insurers said that it strongly oppose any increase to IPT, as it would discourage individuals and businesses from taking out adequate cover. Affordability is especially important for the less well off and smaller businesses particularly at this time.