Business insurance association director welcomes 2011 budget

The director general of the business insurance organisation Association of British Insurers welcomed the recent budget speech as it offered positive routes for growth.

Any firm, regardless of whether they possess specialised business liability insurance, will follow the yearly budget speech closely.  This is because the speech will often contain a few choice items that will have an affect on the UK’s business environment – and this year’s speech didn’t disappoint ABI director general Maggie Craig.

Ms Craig was pleased with the budget’s plan to both secure a UK tax regime that would be more competitive and also the choice to boost long-term investment efforts.  One particularly welcoming piece of good news was the corporation tax’s 2 percentage point reduction in rate.

The UK now boasts the lowest corporation tax rate of any country in the entire G7 group, sending a clear signal to the international community is open for business, she added.

According to the director general, the professional indemnity insurance industry can be counted on to fully support the government’s new Green Investment Bank scheme. Ms Craig stated that insurance providers are uniquely situated to contribute to the programme since they habitually adopt an approach much more suited to long-term gains that the majority of investors.

While she was regretful to hear that there will be a four year wait until the Bank will be able to access money markets, Ms Craig was understanding of the reasons behind the decision and welcomed the extra funding source.

Stating that she was also in agreement with the plan to tax foreign profits, Ms Craig felt that the decision to do so would even the international playing field with the UK’s competitors.

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