Ex-broker turned MP commits to monitoring IPT spending and making sure the money goes towards flood defences.
Craig Tracey MP has said he will keep an eye on where the money raised by the Insurance Premium Tax (IPT) rise in the 2016 Spring Budget is going.
Then chancellor George Osborne stated that the 0.5% IPT increase would raise £700m to be spent on flood protection measures.
Last week Tracey posed a question to the government to find out what had happened to the funds.
“It takes a bit of time to formulate these things and to make sure they’re done properly, but because it had gone quiet for a while I just wanted to make sure that it was being allocated and spent,” he explained.
Flooding
On 12 June David Rutley, interim parliamentary undersecretary of state for the environment replied that the Department for Environment, Food and Rural Affairs (Defra) had received £446.6m, while the Department for Transport had been allocated £150.5m.
Tracey said there were “some positives” in this reply, but stated he would be asking further questions, including what the money would specifically be spent on.
“Flood Re comes to an end in 2039 so we need to make sure that we get affordable insurance for these areas once that fund stops and we need flood measures to be put in place,” Tracey detailed.
Furthermore, adding the figures up results in a total of £597.1m and this leads to the question of where the remaining £103m has gone.
Tracey continued: “I want to get clarity of what is happening to that and how that’s going to be allocated.
“I’ll table some follow-up questions on this to get to the bottom of this and give the department the opportunity to clarify the situation.”
Regulation
Tracey, the Conservative MP for North Warwickshire, has previously stated his plans to promote smaller businesses in the government.
He detailed that his main focus around SMEs in the insurance and financial services sector so far has been around regulation.
“My support involves keeping pressure on the government to ensure that we move to a model of regulation that is fairer and more proportionate to the small businesses,” Tracey noted.
He continued: “It’s something I talk about with ministers at any given opportunity because it’s something that I do feel passionate about.
“The more we give financial freedoms to individuals the more important it is to give them access to things like good advice.”
Brexit
However, Tracey confirmed that a lot of his time is currently spent on Brexit, which he said is an opportunity for the UK financial services sector.
Before the referendum Tracey backed Brexit, telling Insurance Age that he believed leaving the EU would favour UK businesses.
“It’s one of those huge lifetime events that don’t come around very often but it gives a chance to take stock of where the industry is,” he commented.
“Our financial services sector is as good as it is because it’s incredibly resourceful and entrepreneurial in its spirit. I’m confident that it will work even better post Brexit.”
He did though state that it had been a “frustratingly slow process”, adding that businesses and the government wanted certainty in order to plan for the future.
“I have been slightly disappointed by the EU’s attitude towards us and the decision,” Tracey added.
Donald Trump
On 13 July, US president Donald Trump is set to come to the UK and Tracey said he was looking forward to an “interesting” visit.
“At the end of the day he is their elected president, democratically done, so I’m certainly interested to hear first-hand what he has to say rather than through Twitter,” he concluded.
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