The Association of British Insurers has hailed Chancellor Philip Hammond’s decision to keep the insurance premium tax (IPT) at 12% in last week’s budget.

“Not raising IPT further was the right decision… and reflects the much higher profile the insurance industry has successfully given to this stealth tax,” association Director-General Huw Evans said.

“But the pressures on the public purse are not going away, so we need to keep up the pressure to protect customers from further increases in future budgets.”

Before the budget, insurers warned hard-pressed families and businesses would be hurt most by further rises in the IPT, which has doubled in the past two years.