Keeping IPT at its current rate was a pleasing outcome in today’s Autumn Budget, and has been welcomed by the industry.

Director general of the Association of British Insurers, Huw Evans, said: “Not raising IPT further was the right decision by Philip Hammond and reflects the much higher profile the insurance industry has successfully given to this stealth tax. But the pressures on the public purse are not going away so we need to keep up the pressure to protect customers from further increases in future budgets.

UK Insurance leader at EY, Rodney Bonnard, said the insurance market breathed a sigh of relief after Philip Hammond delivered a Budget with no direct changes for the industry.

"Recent visits to the Despatch box have rocked the industry with the aftershocks of his predecessor’s seismic 2014 Budget, which abolished the need to buy an annuity, but this time all was calm. No changes to pension tax relief. No further increase in Insurance Premium Tax. No new ISA variants.

“Instead, the Budget delivered some mild positives for the industry without offering anything revolutionary. The increase in R&D tax credits will be welcome for companies investing to transform themselves into digital businesses. His measures to get more young people onto the housing ladder will take time to have a big effect but might eventually increase their need for home and life insurance. His announcement that the Pensions Regulator has been asked to clarify its guidance on long term investments is welcome, but pension schemes are already starting to incorporate alternative long term investments in their portfolios, so the impact will be more incremental than revolutionary.”

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