It’s been a week since Chancellor George Osbourne revealed the latest changes made in the Summer Budget 2015. As predicted, it has caused some controversy. In the Budget, the Chancellor revealed that there would be a 9.5% increase in Insurance Premium Tax (IPT) starting on 1stNovember 2015, causing disappointment within the British Insurance Broker’s Association (Biba) and as Chartered Insurance Brokers in Manchester, we can understand why.
Biba’s Executive Director tweeted his thoughts on the IPT increase and referred to it as Stealth Tax.
“IPT up to 9.5% from November makes a mockery of the insurance growth action plan and efforts to reduce cost of motor insurance”.
This increase in Insurance Premium Tax will affect many people including those who have household contents insurance, motor insurance and building insurance. To date, there are currently 20.1 million people with household contents insurance, 19.6 million with motor insurance and 17 million with building insurance. If you feel that you too might be affected by the stealth tax, then contact our fully qualified team of Chartered Insurance Brokers in Manchester.
The Budget did highlight some positives including being more firm on regulating Claims Management Companies. The British Insurance Broker’s Association pledged to have stricter regulations on Claims Management Companies to ensure that they are being honest and recognise those who being corrupt, and put a stop to organised insurance fraud. There’s no dispute that there are reputable and genuine Claims Management Companies out there who deliver an honest service to honest customers and these are the ones who need to be recognised.
There was a mixed bag of reviews about the Summer Budget 2015 within our industry, but the Chancellor showed some remorse and commitment to guarantee that Great Britain remains competitive. This has been achieved by the cut in corporation tax to 18% by 2020. It’s important to remember that the insurance industry is a global business and it is therefore vital that the UK remains competitive within the G20.
It will be interesting to see how this develops and what amendments will be made in the next Budget, but in the meantime, if you have any concerns or questions about the recent changes, please don’t hesitate to contact Watson Laurie today. We are one of the very few remaining independent Chartered Insurance Brokers in Manchester who are not owned by an insurer or by a consolidator, and we’re not a member of any broker network. Call us today.