THE Association of British Insurers (ABI) has urged the chancellor to protect savers in the upcoming budget by refraining from increasing taxes.
Research by the ABI shows that companies and individuals have been hit hard in recent Budgets by the change to capital gains tax, which impacted on insurance bonds, and also the higher rate tax relief for pension contributions.
The ABI has called for a commitment from the government to end corporation tax for UK companies on profits made abroad.
Kerrie Kelly, director general said: “Insurers are rightly worried about an uncompetitive tax system which harms global businesses based in the UK.”
Not increasing taxes would also enable individual savers to save more. According to research, 55 per cent of adults said the benefits of saving had gone down over the last 12 months and two thirds believed they would struggle financially if they lost their job.
“Insurers agree that it is important that the economy is rebalanced by facilitating saving not just relying on debt,” Kelly added. “Further changes in the Budget will further harm consumer’s attitude to saving.”