Treasury bows down to industry pressure - papers 18th June

According to the Times, the Treasury’s decision to raise the cap came after fierce industry lobbying. Gary Withers, chief executive of Norwich Union, said: “We’ve been tough on the 1 per cent charge because we felt it was depressing the market. This will open up parts of the market we can’t access at the moment.” BUT WHILE the Treasury may have thought the industry would have been pleased with the new proposals, several life offices attacked the charge cap, arguing the rise was inadequate, reports the Scotsman. Both Standard Life and Aegon said if the government pressed ahead with...