Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of exempting telematics from insurance premium tax on (a) reducing the tax burden on motorists, (b) improving road safety and (c) protecting the environment.

The government keeps all taxes under review, especially in the context of new technology. There is not clear evidence that an Insurance Premium Tax exemption for telematics-based insurance is the best way to achieve the outcomes mentioned in the question.

The government is committed to: reducing the costs on motorists, such as freezing fuel duty for the ninth year in a row; improving road safety, such as making £100 million available from the Safer Roads Fund; and delivering on our ambitious 25 Year Environment Plan.