Industry bigshots, trade bodies join forces to stop IPT hike

Industry figures and trade bodies have teamed up with business, finance and charity groups to call for the scrapping of the planned increase in Insurance Premium Tax (IPT).

 

The Association of British Insurers (ABI), the British Insurance Brokers’ Association (BIBA), the Managing General Agents Association (MGAA) and several other organisations wrote an open letter urging the government to cancel the proposed IPT hike to 12% in June.

 

The groups pointed out in the letter that IPT affects more than 50 million policies purchased by businesses, charities and individuals.

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“IPT is a stealth tax that hits households, charities and businesses who do the right thing and these increases have cost some families hundreds of pounds a year already,” the groups lamented.

 

The groups said insurance-dependent industries, such as manufacturing, construction and exporters, are hit the hardest by IPT.

 

According to the groups, the Institute of Fiscal Studies said that problems with IPT are now “more severe” as the rate has become “too high.”

 

“It is time to end this raid on the responsible by cancelling the planned June IPT increase and freeze it for the remainder of this Parliament,” the letter read.

 

The following executives signed the open letter:

 

· Huw Evans, ABI director general

· Inga Beale, Lloyds of London chief executive

· Edmund King, AA president

· Steve White, BIBA chief executive

· Mike Cherry, Federation of Small Businesses national chairman

· Caron Bradshaw, Charity Finance Group chief executive

· John Hemming, Charity Tax Group chairman

· Miles Celic, TheCityUK chief executive

· Brian Berry, Federation of Master Builders chief executive

· Laurence Besemer, Forum of Insurance Lawyers chief executive

· Iain Elliot, Forum of Scottish Claims Managers chairman

· Dave Matcham, International Underwriting Association chief executive

· Christopher Croft, London and International Insurance Brokers’ Association chief executive

· Charles Manchester, MGAA chairman

· Richard Burnett, Road Haulage Association chief executive

· Martin Sime, Scottish Council of Voluntary Organisations chief executive

· Ruth Marks, Wales Council for Voluntary Action chief executive