Luncheon Vouchers

HC Deb 05 July 1973 vol 859 cc701-2

4. Mr. John Fraser

asked the Chancellor of the Exchequer if he will now increase the tax-free concession for luncheon vouchers beyond 15p per day in view of the increased cost of restaurant meals and VAT.

Mr. Patrick Jenkin

I have noted the hon. Member's suggestion.

Mr. Fraser

What does that mean? Surely, with the rising cost of meals it is about time the concession was at least doubled.

Mr. Jenkin

The hon. Gentleman misunderstands the purpose of the limit, which is to allow the tax-free issue of luncheon vouchers. At present, the 15p a day is equivalent to a tax-free addition to income of about £35 a year. As only some people receive this, there is some justification for keeping this figure within bounds. The figure bears a reasonable relationship to an average cost of the subsidy of meals in works and office canteens. Perhaps that is not a bad comparison.

Mr. Joel Barnett

Is the Chief Secretary saying that the concession was unreasonable when it was first introduced?

Mr. Jenkin

I think it was probably on the generous side when it was first introduced.