Following the Chancellor's Budget Statement on Wednesday 15 March 2023, the ABI comments on measures related to the insurance and long-term savings industry.
As insurance and savings providers, employers and investors, the insurance and long-term savings sector has a significant role to play in supporting the Chancellor’s vision for growth. We welcome the Spring Budget which will help boost the economy, support a thriving workplace and further the UK’s transition to Net Zero. It is reassuring to hear the predictions that the UK will avoid a recession this year.
“The ABI has long called for changes to pension tax relief and today’s announcement is a highly welcome move that will make a real difference for both savers and business alike.
“We also welcome the support for bolstering the UK’s supply of independent, renewable energy and leveraging opportunities for investment in it. We look forward to working with the Government and regulators to discuss how defined contribution pension fund investment can be unlocked to support innovation in the UK.”
Hannah Gurga
ABI Director General
We are delighted that the Government’s package of measures responds to calls from our industry to take bold action to support people in their retirement planning. The increases to the Money Purchase Annual Allowance and Annual Allowance signal the critical importance of pensions, and scrapping the Lifetime Allowance simplifies the pensions tax system. Combined with a boost to Midlife MOTs, these changes will encourage more people to work and save for longer, building financial security. This now urgently needs to be coupled with lowering the age limit for auto-enrolment and paying pension contributions from the first pound people earn, so that more people can benefit from saving more money for their future.
“We also warmly welcome the improvements to childcare support which will help more women return to work and boost their financial resilience. This matters not only for the gender pay gap, it is also vitally important for reducing the gender pension gap.
“Insurers already play a significant role in preventing ill-health, supporting a healthy workforce and helping to reduce pressure on the NHS. We welcome the Government’s focus on helping disabled people and those with health conditions to stay in work, and the steps it is taking to encourage employers to use occupational health services. We urge Government to include health and protection insurers in these measures as providers of quality occupational health services.”
Yvonne Braun
ABI Director of Policy, Long-Term Savings, Health and Protection
We’ve consistently warned that rushing the implementation of the OECD tax reforms risks UK insurers being disadvantaged. Introducing rules which could differ from other jurisdictions, and doing so before others, will only increase administrative burden and could have a significant impact on the competitiveness of UK businesses.
“It is disappointing to see that Pillar Two will be included in the Finance Bill. In order to work properly, the reforms should be thoroughly scrutinised in parliament. The UK Government should be focusing its efforts on ensuring work at the OECD is completed and agreed, and the reforms are workable on a global level. Only if countries implement the same changes at the same time can the reforms achieve their core purpose.”
Mervyn Skeet
ABI Interim Director of General Insurance Policy
For more information please contact ABI Press Office.