General Insurance Article - A Trick or Treat Budget says AA


The AA has labelled the Budget delivered by Chancellor Philip Hammond a ‘Trick or Treat’ Budget. Edmund King, AA president says; “The new £420 million for potholes is an immediate ‘treat’, which has to be spent by the end of April. However the ‘trick’ is the pothole backlog of £9 billion, therefore the treat is a drop in the ocean.

 “The race is on to get working on UK roads before winter sets in. We hope councils will be able to treat roads before they get dangerously tricky.
  
 On Insurance Premium Tax;
 The AA has greeted the Chancellor’s decision to leave Insurance Premium Tax untouched. However, Edmund King, AA President, feels that an opportunity has been missed in the Chancellor’s statement.
 
 “Of course I’m very relieved that the Chancellor has not piled more misery on to drivers and home owners by increasing IPT, which has already doubled over the past two years (from 6% to 12%).
 
 “IPT affects young drivers most and it is a pity that the Chancellor did not take the opportunity to cut this insidious tax for young new drivers who choose to insure their first car with telematics or ‘black box’ cover. On the contrary, because of the high cost of a new driver’s first insurance policy, many already attempt to drive without insurance or try to obtain fraudulent cover through illegal ‘fronting’ (getting a parent to insure their car for them, adding them as a ‘named’ occasional driver when in reality they are the main driver).
 
 “Insurers see the number of crashes involving young drivers dropping by up to a third among those who choose telematics insurance. A tax incentive, such as cutting IPT for say, the first two years, would encourage more to use telematics insurance which in turn, would help cut the number of tragic crashes involving young drivers.
 
 “I would urge the Chancellor to consider this easy win for road safety in his next Budget.”
  
 On electric cars;
 “The Government has missed a trick to get fossil fuelled cars off the road as quickly as possible. It is ridiculous that company car tax for electric cars goes up to 16% in 19/20 before coming down to 2% the following year. The Chancellor could have brought forward this proposal like he had with the personal tax allowance.
  
 “Over a million cars have been registered to fleets and businesses this year. In the drive to tackle air quality, company car drivers need to be given incentives to choose the most environmentally friendly vehicle now, rather than defer their option for a year.”
 
 On additional air ambulance funding;
 “The extra £10 million for air ambulances is money well invested, as they play a vital role in getting those involved in the most serious of car crashes to hospitals quickly.”
  

Back to Index


Similar News to this Story

Willis Re appoint Head of London Market Reinsurance Claims
Claims veteran Steve Robson has joined Willis Re as head of London Market Reinsurance Claims. He brings extensive client-side experience and perspecti
Under 30s most likely to suffer poor mental health in winter
The end of winter may be in sight, but its effect on mental wellbeing – especially in younger workers – could have a lasting impact for the rest of th
Car thieves having a field day with keyless access
Insurance industry research body Thatcham Research has today published new security ratings taking into account the vulnerability of vehicles to keyle

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.