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The British Insurance Brokers’ Association (BIBA) wants to make sure a previous promise by the UK government will be kept by those next in line.
“In 2016, the rate of IPT (Insurance Premium Tax) included on every home insurance policy increased from 9.5% to 10%, and Government said that this increase would be ring-fenced to pay for flood defence and resilience measures,” noted BIBA executive director Graeme Trudgill (pictured).
HM Treasury’s March 2016 Red Book indeed states that all the revenue raised from the abovementioned hike will be poured into flood defence and resilience.
Currently IPT stands at 12% for most classes of personal insurance, excluding travel coverage. The rate was last adjusted in 2017.
“With a whole host of spending commitments made by each of the major parties already in this election campaign, it is vital that this earmarked pot of money is not absorbed into general government revenues and spent in other areas,” asserted the BIBA official.
“The devastating effects of flooding upon both individuals and communities are clear, and our members help them recover and rebuild when the worst happens. Brokers tell us how important the protection afforded by flood defences is to their customers and to the wider economy.”
The trade body’s call comes amid the recent flooding in the north of England.
Citing data from the Association of British Insurers, Trudgill added: “Defences save the UK around £1.1 billion each year in flood prevention and aside from the considerable human importance defences offer, they represent excellent value for money.”
