AD

Young drivers could be put off getting car insurance as a result of the Budget’s increase in insurance tax, Tory MPs have warned. The jump from 5% to 6% was criticised by former minister Christopher Chope. He said it could also result in fewer people taking out health insurance putting more pressure on the NHS. Former Cabinet minister John Redwood also hit out at the move, which would raise £400 million a year, saying that the rise would impact already heavily taxed motorists. Mr Chope called for Insurance Premium Tax (IPT) to be frozen for health and vehicle policies. The standard rate is set to increase to 6% from January 4 next year as part of the Budget’s package of measures to cut the deficit. More