The Association of British Insurers has warned the Treasury that Britain’s standing as a leading financial centre is in danger of being undermined by its changes to tax and regulation.
The ABI and the CBI made separate warnings, saying that, if the government made hasty changes to banking regulation and pushed ahead with changes to the tax on capital gains and non-domiciled workers, the financial services sector and the country’s reputation would be damaged, The Times reports.
‘The US responded to the collapse of Enron with the Sarbanes-Oxley legislation, with seriously damaging consequences for the American corporate sector. We could be about to make the same mistake,’ Richard Lambert, CBI director-general, said in a speech to the City. ‘Ill-thought-out legislative responses to financial shocks can have very damaging consequences.’ he said.
The ABI reiterated its call for a compromise agreement for investment bonds in the light of changes to CGT measures.
Further reading:
Three business leaders urge tax changes scrapped
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