Drivers face being slapped with an "unfair levy" - as they demand the Labour Party government makes tax changes so they can be spared a £300 fine and licence points.

Money raised from Insurance Premium Tax last year totalled £692million. Data shows motorists and road users paid a total of almost nine per cent more in tax on their car insurance policies in 2024.

The standard rate of Insurance Premium Tax (IPT) has remained at 12 per cent since 2017, but was only 2.5 per cent when it was first introduced in 1994.

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Data from the AA found that the total amount of IPT from car insurance has totalled almost £700million, an increase of 8.6 per cent compared to the previous year.

HMRC suggested that th

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