The Chancellor's decision to freeze insurance premium tax has been warmly welcomed by health insurers and intermediaries.
IPT has been described by the industry as adding no value to the policy but making easy money for the Chancellor.
Product providers had feared the Chancellor would increase the tax, set at
5 per cent, to around 7 per cent on Budget day.
Insurers are also welcoming the extra £2bn funding for the NHS but feel an opportunity has been missed to establish a healthier relationship between the public and private sectors through tax relief.
Legal & General Healthcare managing director John Castagno says: "The freeze on IPT is good news for the sector as it will make private medical insurance available to more people."
Association of Medical Insurance Intermediaries chairman Bill Poynton says: "If the promised £2bn injection for the NHS is genuine new money, then it is great news. I would have liked to have seen tax relief implemented to foster a better relationship between the public and private sectors though."
Prime Health managing director Mike Hall says: "The stronger the NHS, the better for the private sector but there is a long-term need for a public-private partnership in healthcare that is not being addressed."