Treasury's 2007 tax reforms increase consolidation fears

The 2007 Budget is simply the Treasury "giving with one hand, and taking with the other", according to the British Insurance Brokers' Association (Biba).

In this year's budget, the government has promised to remove tax barriers against individual investors in Lloyd's, and has announced major reforms to the corporate tax system by reducing the headline corporation tax rate from 30% to 28% from April 2008.

However, it has also increased the corporation tax rate for small companies from 20% this