Speculation is mounting that the Chancellor will scrap the insurance premium tax (IPT) in his Budget later today.
Several leading industry sources have confirmed that they have pushed for the abolition of the tax, which is levied on top of insurance transactions at 5%.
In its submission to the Treasury, the Engineering Employers Federation said: "In the short-term, the government should return the windfall from increased receipts of insurance premium tax. This could be done by simply reducing the rate of insurance premium."
It also called on the government to "maintain the impetus of the review of the current operation of employers' liability insurance."
The Budget speech commences at 12.30pm today.
