In the Chancellors Autumn Statement he revealed that insurance premium tax (IPT) will rise from 10% to 12% from June next year. Insurers and motoring groups are not happy with the government’s announcement at all.

It will push up the cost of home, car, pet and buildings insurance for policyholders. The increase means that this form of tax will have doubled in less than two years. Exempt from the tax rise is travel insurance as this has a separate tax rate.

Chancellor Philip Hammond said: “Insurance premium tax in this country is lower than in many other European countries, and half the rate of VAT.”

Huw Evans, director general of the Association of British Insurers, the industry trade body, said the move was a “hammer blow for the hard pressed”.

“Yet another increase ... will hit consumers and businesses alike, hurting those who buy business, motor, property, pet and health insurance. It marks a doubling of insurance premium tax since last year," he said.

Here are the key points to come from the Autumn Statement:
• No further welfare savings measures
• Increase in Personal Allowance to &12,500 by the end of the parliament, and the Higher Rate Threshold to &50,000 by 2020-21
• Increase in National Living Wage from &7.20 to &7.50 in April 2017
• Ban on letting agents charging fees to renters “as soon as possible”
• New three-year NS&I Investment Bond available from spring 2017
• Fuel duty frozen for a seventh year
• New national productivity investment fund of &23bn to be spent on innovation and infrastructure
• &1bn to invest in full-fibre broadband and trialling 5G networks
• &2.3bn Housing Infrastructure Fund for infrastructure for up to 100,000 new homes in high-demand areas
• Continued support for Help to Buy loan scheme and Help to Buy ISA
• Corporation Tax to fall to 17%
• Salary sacrifice schemes to be subject to the same tax as cash income from April 2017 (pensions, childcare and cycle-to-work schemes exempted)
• Autumn statement abolished. Instead, the UK will hold annual budgets in Autumn from 2017 and hold Spring fiscal statements