RAC response to 2015 Summer Budget: increase in Insurance Premium Tax (IPT)

Mark Godfrey, director of RAC Insurance said: “This increase can only be seen as a tax on the motorist because of course insurance is mandatory if you drive, so consumers have no choice.

“On a typical £400 premium this will amount to £14 extra and really undermines the work that has been undertaken by both the industry and the Government to drive down the cost of car insurance.

“By maintaining a freeze on fuel duty today the chancellor has appeared to support motorists with the one hand, but is very much taking away with the other as the change in IPT will mean a significant increase in the cost of motoring.”