Cameron lays out plan to spare the

Cameron lays out plan to spare the ‘squeezed middle’

Cameron lays out plan to spare the ‘squeezed middle’

By Oliver Hotham

The prime minister will lay out today the government's plans to curb the rising cost of living,amid deepening concerns over rising insurance premiums.

He will meet with figures from the insurance industry and from business and consumer groups later and outline the government's plans to deal with rising prices.

"That is why cutting our massive deficit to keep interest rates down is so important; and is why we have frozen council tax, cut fuel duty and taken action to reduce energy bills," he will say later.

"I am determined to tackle this damaging compensation culture which has been pushing up premiums.

"I want to stop trivial claims, free up businesses from the stranglehold of health and safety red tape and look at ways we can bring costs down."

Government policies like cuts in fuel duty, incentives for councils to cut tax, and action on pensions will be cited as contributing to reducing costs.

Policies to crack down on uninsured driving, reform 'no-win-no-fee' and reduce fees lawyers can earn from small value personal injury are attempts to reduce insurance costs.

Labour has reiterated their claim the government is out-of-touch, and that people want "less talk and more action":

"Getting insurance costs under control requires the government to bring forward concrete proposals and as a start support Labour’s proposal to limit whiplash claims," said John Woodcock, shadow transport minister.

Car insurance prices have risen by 17% since last year.