Income Tax (Travelling Expenses) (Hansard, 13 February 1962)

§ 9. Mr. W. Baxter
asked the Chancellor of the Exchequer if he will give tax relief to working and professional people who incur considerable cost in going to and from work.

§ Sir E. Boyle
No, Sir.

§ Mr. Baxter
Do I understand that the Chancellor will not give consideration to this very important question when in fact there are closures of pits in many areas throughout the land and people have to travel considerable distances to their work? I can assure him that in my constituency the majority of people have to incur expenses of up to and sometimes over £1 a week. If he seeks to be fair and equitable in taxation he must give serious consideration to expenses incurred by working people travelling to and from their work.

§ Sir E. Boyle
The hon. Gentleman may recall that the Royal Commission on Taxation considered this question and came down decisively in favour of the view that such an allowance would not in general be justified, and the Government feel that that argument stands.

§ Mr. Callaghan
Whatever dusty answer may be given on this, is the Financial Secretary aware that there is growing resentment at the treatment of P.A.Y.E. workers in matters of expenses in comparison with those assessed under Schedule D? Will he take steps to ask his right hon. and learned Friend to equalise conditions under which expenses are granted between Schedule D and P.A.Y.E. taxpayers?

§ Sir E. Boyle
The hon. Gentleman is raising a matter of considerable importance which ranges rather wider than the Question on the Order Paper. We shall no doubt have an opportunity of discussing the point raised by the hon. Gentleman at an appropriate time.

§ Mrs. Braddock
Is the Financial Secretary aware that this creates very great difficulty in industrial areas where there is new housing and people have to go seven or eight miles out of the centre of the city. In many instances, the cost of transport is 5s. or 6s. a week, and this makes it difficult to persuade people to go into the new houses. The Chancellor knows perfectly well that this is so on Merseyside. Would it not be wise to look at this position to see if means could not be found to ease the situation?

§ Sir E. Boyle
The hon. Lady is perfectly right in saying that the tax system must be seen to be fair. It would be quite impracticable to devise a relief as 1101 suggested in the Question which would be both fair and workable.

§ Mr. Speaker
Mr. Hamilton, Question No. 10.

§ Mr. Baxter
On a point of order, Mr. Speaker. I beg to give notice that I shall raise the matter on the Adjournment.

§ Mr. Nabarro
On a point of order—

§ Mr. Speaker
There can be no further point of order to a notice which was itself given late.

§ Mr. Nabarro
On a point of order, Mr. Speaker. Is it in order to give notice that a matter is to be raised on the Adjournment which inescapably must involve new legislation?

§ Mr. Speaker
It is perfectly in order to give notice. I will consider whether the matter is in order on the Adjournment when it arises and not now.