HC Deb 01 July 1969 vol 786 cc220-1
10. Mr. Boyd-Carpenter

asked the Chancellor of the Exchequer when 3s. was fixed as the limit beyond which luncheon vouchers issued by an employer to his employees would be treated as taxable in the hands of the employee.

Mr. Taverne

In 1948.

Mr. Boyd-Carpenter

In view of the lapse of 21 years, if 3s. was then the right figure, fixed by the then Labour Government, should it not be much higher now?

Mr. Taverne

No, Sir. This can be viewed in a number of ways. In the first place, one has to consider those who have to pay in full for their meals; in the second, it puts those who receive luncheon vouchers in no more advantageous a position than those who enjoy the benefits of a subsidised canteen.

Mr. Lipton

Is my hon. and learned Friend aware that this method of subsidising wages is unnecessary and out of date and that it should be replaced by a more satisfactory wage structure, which would make all these niggling forms of subsidy unnecessary?

Mr. Taverne

This is in some ways anomalous, but it has existed for a long time and its withdrawal would be resented. But I accept that that is a good reason for not extending the system.