Tory MPs attack IPT rise

Tory MPs, including former cabinet ministers Christopher Chope and John Redwood, have warned the Budget rise in insurance premium tax (IPT) could deter young motorists from getting cover, Channel 4 reports.

Chope said the rise from 5% to 6% could also result in fewer people taking out health insurance, increasing the burden on the NHS. He called for Insurance Premium Tax (IPT) to be frozen for health and vehicle policies.

Committee hearing

At the committee stage of the Budget-enacting Finance Bill Chope told the Commons the rise would be "a disincentive to people to take responsibility for their own personal health care through the means of personal health insurance.

"If we want to get more expenditure on health why don't we incentivise people to take on more responsibility themselves?"

Chope said young people were likely to have higher car insurance and would therefore be harder hit by the rise. Quite often they will take a risk, going on the roads driving while uninsured."

He warned that if the increase led to more people driving uninsured then any benefit could be wiped out.