PARLIAMENTARY WRITTEN QUESTION
Motor Insurance: Insurance Premium Tax (28 November 2016)

To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect of the two per cent increase in insurance premiums on the number of uninsured vehicles in (a) Scotland and (b) the UK.

Asked by:
Ian Murray (Labour)

Insurance Premium Tax (IPT) will increase from 10% to 12% from June 2017. IPT is a tax on insurers and it is up to them whether they pass on any increased costs.

The Government has no evidence to suggest that this level of change to IPT will lead to changes in the number of uninsured vehicles. The estimated number of uninsured vehicles in the UK has fallen from 2 million in 2005 to 1 million today.

Answered by:
Jane Ellison (Conservative)
1 December 2016