Chancellor raises IPT to fund flood defences

Today’s Budget saw the Chancellor raise Insurance Premium Tax (IPT) by 0.5%. Mr Osborne said that the money raised by this action would go to bolstering Britain’s flood defences.

In his Budget address, Osborne said, ‘to respond to the increasing extreme weather events our country is facing I am today proposing a further substantial increase in flood defences. That would not be affordable within existing budgets.’

‘So I am going to increase the standard rate of Insurance Premium Tax by just half a percentage point-and commit all the extra money were raise to flood defence spending.’

‘That’s a £700 million boost to our resilience and flood defences.’[1]

‘The urgent review already underway by the Environment Secretary and the Chancellor of the Duchy of Lancaster will determine how the money is best spent. But we can get started now. I have had many representation from colleagues across the House.’

‘So we are giving the go ahead to the schemes for York, Leeds, Calder Valley, Carlisle and across Cumbria.’[2]

Chancellor Osborne said that the move was more of a wider investment in Britain’s infrastructure:

‘Across Britain, this Budget invests in infrastructure-from a more resilient train line in the South West, to crossings at Ipswich and Lowestoft in the East-we are making our country stronger.’[2]

Chancellor raises IPT to fund flood defences

Chancellor raises IPT to fund flood defences

The changes will undoubtedly be a boost for property owners concerned about their property being liable to flood risks.

If you are a landlord with an investment property at risk of flooding, make sure you look at our landlord insurance policy. This will give you sufficient cover and peace of mind that if Mother Nature strikes, you don’t have to worry.

There will be further fallout from the Budget as the Chancellor’s moves begin to settle in. Make sure you check our social media outlets and our sister site Landlord News, for all the latest reaction.

[1] http://www.mindfulmoney.co.uk/personal-finance/budget-2016-chancellor-hikes-tax-on-insurance-to-pay-for-flood-defences/

[2] http://www.constructionenquirer.com/2016/03/16/flood-defence-work-gets-700m-budget-boost/

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