MPs criticise insurance tax hike
Tory MPs have criticised Budget plans to increase tax on insurance, arguing it could deter cash-strapped young motorists from taking out cover.
Christopher Chope also said the rise from 5% to 6% could result in fewer people taking out health insurance, increasing the burden on the NHS.
Former Cabinet minister John Redwood described more expensive insurance as an extra burden for already heavily-taxed drivers, saying while the rise may be "a straw" in cash terms, "the camel's back is already well and truly loaded".
The measure is expected to raise £400 million a year, but Mr Chope called for Insurance Premium Tax (IPT) to be frozen for health and vehicle policies.
The standard rate is set to increase to 6% from January 4 next year as part of the Budget's package of measures to cut the deficit.
At committee stage of the Budget-enacting Finance Bill, Mr Chope told the Commons the measure would be "a disincentive to people to take responsibility for their own personal health care through the means of personal health insurance".