In his first Autumn Statement the new Chancellor of the Exchequer announced a further rise in Insurance Premium Tax, from the current level of 10% to 12% effective from 1 June 2017.
This is the third increase in quick succession, which has effectively taken the rate from 6.5% to 12% (up by 66%) in less than 18 months. We are extremely conscious of the added cost implications for all of our clients of these repeated increases and have, via our trade association - The British Insurance Brokers Association (BIBA), made representations to The Chancellor, making the very important point of this additional burden on businesses who are effectively being penalised for protecting themselves properly.
BIBA will keep up the lobbying with Government to ensure that they are kept aware of the impact of this additional cost, as well as trying to obtain commitment from them that the additional revenue will be directed to areas such as flood defences and maintenance.
Without wishing to be pessimistic there are soundings of further increases in the future and this is something we will ensure remains high on the agenda with BIBA to rally against in all of their discussions with Ministers.