THE States may reverse a decision to abolish relief on life insurance policies when it draws up the final tax package for 2008. Chief Minister Laurie Morgan said that the move, introduced only in the final package approved by the States last week, could be withdrawn for those who have existing policies, particularly those supporting endowment mortgages.

He said he could probably support such a turnaround. ‘I think that’s something where they will be pushing at an open door with Treasury,’ he said.

Deputy Mike Torode was among States members unhappy at the proposal.

He even considered bringing an amendment to reverse the decision.

He said that many people with endowment policies had planned their finances tightly.

‘For those already with endowments, the interest relief they were going to get on those premiums could be important for their budgeting. They are tied into those mortgages and we ought to acknowledge that.’

Deputy Torode also proposed that the £400,000 ceiling on mortgage relief should be reduced to £300,000.

He said that figure was enough to cover the mortgage of most middle-income earners.