Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to paragraph 5.121, page 99 of the Autumn Statement 2023, what his planned timetable is for publishing a consultation on introducing a UK regime for captive insurance companies; what discussions his Department has had with the (a) Prudential Regulation Authority and (b) Financial Conduct Authority on the potential introduction of a captive insurance regime; and what recent assessment his Department has made of the potential merits of introducing such a regime.

As announced at Autumn Statement, the Government will consult on the design of a new framework for encouraging the establishment and growth of captive insurance companies in the UK. The consultation will launch in Spring 2024.

The consultation will test views on proposals to introduce an attractive and competitive new UK captive insurance regime that works for businesses. Key to this will also be proportionate regulation that maintains the UK’s high regulatory standards.

The Treasury will continue to work closely with the independent regulators as it considers the case for a UK captives framework.