George Osborne's 'cavalier' approach to PI ignores vulnerable people

Lawyers have accused George Osborne of 'hypocrisy' over his reported plan to increase the insurance premium tax (IPT) in today's Budget.

The chancellor's rumoured plan to increase IPT came to light over the weekend with a report from the BBC.

If IPT is raised, it could mean the tax will have doubled in less than six months. IPT was raised from 6 per cent to 9.5 per cent in November 2015.

It has been estimated that such an increase could raise as much as £1.3bn for the Treasury in 2016.

The Treasury said it would not comment on speculation ahead of the Budget announcement today.

'Yet another hike in car insurance premiums will surely follow hot on the heels of an increase in insurance premium tax,' said Jonathan Wheeler, president of the Association of Personal Injury Lawyers (APIL).

'Yet, in November's Autumn Statement, the chancellor was so determined to reduce car insurance premiums that he announced the right to claim damages for some whiplash injuries would be removed.

'The fact that, on the one hand, the chancellor is prepared to sacrifice the right to claim damages for injuries in the hope that premiums will fall and, on the other, actively to do something which will increase premiums simply smacks of hypocrisy,' continued Wheeler.

'The right to claim damages from someone who has injured you is a right which is ancient and precious and which must be preserved.

'The chancellor's cavalier approach to that right shows a callous disregard for the plight of vulnerable and injured people.'