The Engineering Employers' Federation (EEF) has joined mounting pressure on the government to reduce insurance premium tax (IPT) in the next budget.
The EEF said this follows research showing that companies' insurance costs have spiralled in the last year - in some cases increasing as much as ten-fold.
EEF chief economist Stephen Radley said: "Increased insurance costs are now a major issue facing companies at a time when their cashflow is already stretched.
"The Chancellor could significantly ease the burden on companies by halving insurance premium tax without losing revenue."
