§ 7. Mr. Meacherasked the Chancellor of the Exchequer what proposals he has for the inclusion of fringe benefits within the scope of income taxation; and whether he will make a statement.
§ Mr. Patrick JenkinMy right hon. Friend has no statement to make on this matter.
§ Mr. MeacherIs the hon. Gentleman aware that the wide range of allowances and reliefs granted in respect of fringe benefits increasingly disproportionately benefits those in the higher income groups by the concession of very substantial tax-free 828 lump sums? What steps will he take to reconcile this with the principle of progressivity in income tax?
§ Mr. JenkinI imagine that the hon. Gentleman has in mind approved pension schemes and the tax reliefs in connection with them. The Labour Government introduced comprehensive legislation this year, which we are now reviewing, which retained a large number of the advantages to which the hon. Gentleman refers.