LONDON, 18 March 2015 - Aon plc (NYSE:AON), has commented on today’s UK Budget Speech.

On the economy
Tapan Datta, global head of asset allocation at Aon Hewitt, said:
“For a Chancellor who has made fiscal austerity such a touchstone of economic policy, the lack of a give-away Budget should not occasion surprise.

“It is nice that the Office for Budget Responsibility is found to have not been too optimistic for once, with deficits and debt likely to move lower a little faster than it had expected a few months ago.  Even so, with major political and economic uncertainties ahead, such budgetary projections must be taken with the appropriate pinch of salt.

Tapan Datta continued:

“The spending cuts remain the predominant driver of fiscal consolidation and the expected scale of cuts to take public spending to among the lowest levels versus GDP seen since the war looks very daunting.

“Neither gilts nor sterling are likely to be much perturbed or pleased by the Budget announcement given its fiscal neutrality, but the energy sector in the UK equity market will have liked the relief from lower petroleum revenue taxes.”

On apprenticeships
Dominic Christian, chief executive officer of Aon UK Limited and executive chairman of Aon Benfield International, said:
“We welcome the Government’s commitment to further supporting apprentices in this country by introducing the Apprenticeship Voucher and abolishing National Insurance contributions for these committed young people.  We enjoy being part of the leadership of the Government's Trailblazer Programme because we believe that apprenticeships are key to building our future economy and offer an important alternative pathway to develop a career.
“As a global firm, headquartered in London, we have been fully committed to growing the number of apprenticeships since we launched our own scheme in 2012.  Now in its third year, we have 33 apprentices and we plan to double this number.”

On the UK reinsurance industry
David Ledger, chief executive officer Aon Benfield UK and chief operating officer Aon UK Ltd, said:
“Through insurance-linked securities and other financial vehicles there has been a growing prevalence of alternative capital in the global reinsurance market, and so we welcome today’s pledge by the Chancellor that the UK government will work with the industry and regulators to develop a new competitive corporate and tax structure that would allow these securities to be domiciled in the UK.”

On UK pensions
Kevin Wesbroom, senior partner at Aon Hewitt said:
“The changes announced today may well herald a new era for employers and the benefits packages offered to employees.  Weakening the tax breaks on pensions and promoting ISA reliefs could be seen as advance notice by the Treasury that they have their sights set on an integrated savings regime, covering both long term and short term savings – collapsing pension and ISA tax reliefs into a single system.

“Forward thinking employers may find that such an approach enables them to appeal to all of the demographics in their workforce and they can design incentives that appeal to their 25 year olds and their 65 year olds. With suitable technology support and member guidance and education, this need not increase costs – but will redistribute the existing spend across the broader workforce. "

Media contact:
Colin Mayes
Aon Hewitt 
+44 (0)1372 733689
colin.mayes@aonhewitt.com                                                   
 

 Sarah Booker
 Aon Risk Solutions
+44 (0)20 7086 4872s   
sarah.booker@aon.co.uk
 

Andrew Wragg
Aon Benfield
+44 (0) 20 7522 8183
andrew.wragg@aonbenfield.com

Notes to Editors

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About Aon
Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, best reinsurance intermediary, best captives manager, and best employee benefits consulting firm by multiple industry sources. Visit aon.com for more information on Aon and aon.com/manchesterunited to learn about Aon’s global partnership with Manchester United.