Life - Articles - OBR IPT forecast downgraded slightly alongside Budget 2026

The trend continues to show year on year increases in IPT tax receipts. Last week, HMRC data revealed that IPT receipts hit a near-record half year (2026/27) total of £4.53 billion , just £11 million shy of last year’s record six-month total of £4.54 billion (April-September).

Cara Spinks, Head of Life & Health, Broadstone, commented: “While the Chancellor has spoken about easing pressure on the NHS and supporting people to remain in work, today’s Budget missed an opportunity to use the tax system to encourage greater investment in employee health and wellbeing.

“Insurance Premium Tax continues to generate significant revenues for the Treasury, but it also increases the cost of health insurance and health cash plans for employers and individuals. At a time when the Government is rightly focused on reducing economic inactivity and improving access to healthcare, it is worth considering whether this remains the right approach.

“Workplace health benefits can play an important role in helping people access diagnosis, treatment and preventative support more quickly, reducing the impact of ill-health on individuals, employers and the wider economy. This is particularly relevant for smaller businesses, where affordability can be a key barrier to providing these benefits.

“If the Government wants employers to play a greater role in supporting workforce health, targeted tax incentives which encourage investment in healthcare benefits could help improve access to care, support productivity and complement the NHS rather than competing with it.”

OBR Economiv Outlook October 2026 - p.184