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Daily Insurance Industry News
Monday 23rd of July 2018
March 7, 2008

ABI critical of Chancellor prior to Budget

by Richard Kilner

Story link: ABI critical of Chancellor prior to Budget

Chancellor Alistair Darling has been told by the ABI that the standing of financial services and the status of London as a dominant financial centre are at risk.

The Budget, which will take place on 12 March, is the first under Chancellor Darling, after ten years of Chancellor Brown’s handling of the economy.

It is expected to be a difficult time for the Treasury, and the ABI’s letter, written to the Chancellor and reported in the Times, will not make Darling’s situation any brighter.

Stephen Hadrill, the organisation’s director, wrote that recent months have seen serious problems, not the least of which is the nationalisation of Northern Rock.

Hadrill went on to refer to the pre-Budget report problems, such as a climbdown on Capital Gains Tax (CGT), and the credit crunch, all factors which have contributed to the danger that London’s pre-eminence as a global financial centre could be damaged.

However, the Chancellor has a prime opportunity to remedy the situation, according to Hadrill, at the forthcoming Budget.

One particular policy the ABI would like altering is the proposed 40% band of CGT to be lowered to 30% for investors in investment bonds.

Whether or not the ABI’s wish will be granted will be found out next Wednesday.

 

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