Labour has hit out at the government over delays to overhauling EU-era Solvency II rules demanding that it needs to “get a move on”.
Shadow city minister Tulip Siddiq called on Chancellor Jeremy Hunt to reform the rules – which govern the sums of money insurers must hold on their balance sheets to protect themselves against bankruptcy – in order to unlock billions for investment in Britain’s economy.
“This failing government needs to get a move on with Solvency II,” Siddiq said. “The Chancellor hasn’t even set out his plan for ensuring that the bulk of the money released will be invested in Britain.”
“The Conservatives have promised reform 10 times in the last 3 years with nothing to show for it,” she said.
“The next Labour government will unlock capital in the insurance industry and give financial services the certainty they need to invest this money in the jobs and industries of the future through our Green Prosperity Plan,” she added.
Siddiq’s comments come after shadow chancellor Rachel Reeves promised a future Labour government would review business tax, pledging to deliver stability and end the “yo-yo” of corporation tax rates.
A government spokesperson said: “We are only able to reform these rules because we got Brexit done.
“Now we are actively working with industry and the regulators to implement the reforms, which will unlock over £100 billion of productive investment across the UK over a decade.”