Insurance and savings trade body the ABI has called on the Government to scrap Insurance Premium Tax (IPT).

The ABI has branded a new rise in Insurance Premium Tax as a “hammer blow for the hard pressed”.

The ABI is urging the Chancellor to announce a freeze on any further rises in insurance premium tax, warning that recent rises have added £100 a year to household bills.

Insurance Premium Tax will rise to 10% from tomorrow (1 October) - an increase that will affect more than 50m households, says the ABI which has branded the hike a “raid on the responsible.”