Fringe Benefits (Business Executives)

HC Deb 01 May 1975 vol 891 cc706-7

5. Mr. Gwilym Roberts

asked the Chancellor of the Exchequer what calculation he has made of the value of fringe benefits offered to business executives, and the amount which could be recovered in taxation by making the value of such benefits liable to taxation as income; and if he will make a statement.

Mr. Robert Sheldon

The term "fringe benefits" covers a wide range of facilities and the information available does not enable reliable calculation of their overall value to be made. Fringe benefits are already taxable when received by business employees earning £5,000 or more a year, or by company directors. But as my right hon. Friend said in his Budget Statement—reported at col. 317 of Hansard of 15th April—it will be his intention in the future to take further action on fringe benefits.

Mr. Roberts

Does my hon. Friend accept that the few steps taken on this matter in the Budget are widely welcomed on the Government side of the House? I am sure that he will agree, however, they can only be an opening gambit. If he has studied certain reports, he will have seen that these fringe benefits are tending to increase in amount, and can include not only such items as cars and houses but even servants, and God knows what else these days. Does he agree that if the social contract is to have any meaning, and if—

Mr. Speaker

Order. This is not the time for making speeches. It is for asking questions.

Mr. Roberts

Does my hon. Friend agree that if it is not to cause shop floor disillusionment, action needs to be taken against these back-handed payments?

Mr. Sheldon

What my hon. Friend says is largely correct. My right hon. Friend the Chancellor will be taking action next year. The whole matter is under investigation.

Sir Frederic Bennett

If there is to be a review of the matter, will the Minister concerned also undertake to examine fringe benefits which are not confined to business executives, such as concessionary coal and the use of cars for people other than business executives—people in trade unions?

Mr. Sheldon

The hon. Gentleman will be aware that miners have been treated as a special case for the past 30 years. If the Conservatives did not like it, they had plenty of opportunity to change it. When they investigated the matter they saw the reasons. As I said, the whole area is under investigation, and we shall be putting forward proposals in due course.