Association warns Alistair Darling that London's financial pre-eminence is under threat
The Association of British Insurers has warned Chancellor Alistair Darling that the health of the financial services sector and London's status as a financial centre are under risk.
In a letter to the Chancellor ahead of next week's Budget, reported in today's Times, ABI director general Stephen Hadrill wrote: "We have seen serious problems in the last few months. Concerns about the handling of Northern Rock, reaction to the credit crunch and the fallout from various measures contained in last October's Pre-Budget Report have all put the financial services sector and London's pre-eminence as a financial centre at risk. So the Budget provides a timely opportunity for you to repair the government's own reputation."
The ABI called for a compromise rate of 30% capital gains tax for investors in investment bonds, rather than the 40% currently proposed by the government.
