The Association of British Insurers has called on the Government to reduce the rate of insurance premium tax in this week's Autumn Statement. The industry body said the tax had doubled to 12% since 2015 and hit the poorest the hardest who spend proportionately more on insurance, such as home and motor.

Mervyn Skeet (pictured), the director of general insurance policy at the ABI, said: “Insurers are doing all they can to offer competitively priced insurance, despite facing some substantial increases in costs outside of their control. Now has never been a better time for the government to show its support to the millions of homeowners and businesses who do the right thing by protecting their families and livelihoods against sudden financial shocks, than to reduce insurance premium tax.”

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