Budget dashes hope of medical cover boost
Hopes of incentives to boost the number of private medical insurance customers were dashed in the Spring Budget.
The Association of Medical Insurers and Intermediaries (AMII) reacted with disappointment at the lack of tax breaks for getting cover.
It argued that tax relief on Insurance Premium Tax would encourage health cover uptake, support a healthier population and incentivise employers to look after staff health, ultimately helping more to stay in work.
AMII executive chairman Dave Middleton said: ‘It is disappointing that the Chancellor has simultaneously raised corporation tax – from 18 to 25% – while refraining from introducing tax relief for the private medical insurance industry.’
With the NHS under such pressure, he added that the Government had missed the chance to take positive steps to encourage growth in the private medical insurance market.
‘While we welcome the £400m of funding for mental health and musculoskeletal support, I would urge the Chancellor to go further and review the announcements made in the Budget to offer some much-needed respite for the private health and well-being sector.’
Tax relief on private cover premiums were also called for by the Confederation of British Industry.