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£90 insurance tax hike for hard-pressed families

November 24, 2016 3:15 PM

South Lakes MP Tim Farron has condemned the government's decision to sneak an insurance tax hike into yesterday's Autumn Statement, which will leave the typical family to fork out an additional £90 a year compared to 2015.

The Chancellor sneaked out an increase to 12% for all insurance premiums, up from 10% in George Osborne's last budget. In total, it means premiums have doubled since 2015 under this Conservative government.

Average motor insurance will increase by £8, or an increase of £25.79 since the Tories took power on their own.

The changes are also likely to hit young people the most, who tend to pay higher premiums for motor and contents insurance.

Tim said: "The changes the Chancellor snuck into the small print of yesterday's Autumn Statement will mean that every home owner, car driver and business will see their premiums rise yet again.

"Here in Cumbria, many people have already seen significant rises in the cost of insurance due to last winter's floods. Instead of trying to cushion this blow, the government has hit them with a further tax rise. It is those who are really struggling to make ends meet who will be worst hit by this."