HC Deb 16 December 1976 vol 922 cc1703-4
1. Mr. Corbett

asked the Chancellor of the Exchequer what is the estimated annual cost of tax relief at the standard rate on second-class rail commuter season tickets costing: (a) £250 a year, and (b) £500 a year.

The Minister of State, Treasury (Mr. Denzil Davies)

I regret that the information needed to provide the precise estimates requested is not available. However, if expenditure on all railway season tickets were relieved at the basic rate of tax the current cost would exceed £50 million.

Mr. Corbett

Will my hon. Friend accept that many people in Hemel Hempstead and other new towns around London and other cities have no option but to commute to their jobs because that is where they are employed? Does he accept that they are hard hit by escalating rail fares? Would it not help the voluntary pay policy and British Rail if some tax relief could be given, at least on part of commuters' season tickets?

Mr. Davies

Most people have to commute to work, but it does not follow from that that we should give tax relief on travel. If we did as my hon. Friend suggested, it would be unfair—apart from the expense—to other people who travel to work in other ways.

Mr. McCrindle

Has not the time come when, instead of repeating that type of answer, the Government should look to the systems in operation in four of the EEC countries where part of essential travel-to-work expenditure is allowable against tax? Will the Government also explore the possibility of employers who provide travel vouchers to employees in the same way as luncheon vouchers being able to claim the expense against corporation tax?

Mr. Davies

One cannot deal with these problems by giving various forms of tax relief. Perhaps there are other ways of dealing with the problem, but that is not the way.

Dr. Glyn

Is the Minister aware that rail fares are now so high that some of my constituents are being asked to pay £500 a year out of their taxed income in order to earn a living? Should it not therefore be a deductible expense against income?

Mr. Davies

People pay many necessary expenses, but it does not follow that they should be deductible against income tax.