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Can You Help Us Darling?

In a move which has never been seen before in the City, Alistair Darling will hold a meeting with the Association of British Insurers (ABI), commonly regarded as the most influential lobby group in the financial world. The move seems to be an attempt by the Treasury to repair bridges which have been damaged of late and put the government back into the ‘good books’ of the financial world.

The ABI has been heavily critical of the government’s tax record of late and the way in which they have dangled policies to the market and then changed them at the last minute. It will take an awful lot of sweet talking to get the ABI back on side but with everything else seemingly turning against the government, they really have little choice.

It is widely known that Darling will be replaced as Chancellor at the next cabinet reshuffle but he will be keen to leave office on a high note. However, the government need to be careful that they do not over extend the hand of friendship to the ABI and risk cries of favouritism.

After a good start with the City, the relationship between the various financial lobby groups and the government has been shattered over the last few months. Is it now beyond repair?

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