HC Deb 23 February 1989 vol 147 cc1134-5
7. Mr. Clelland

To ask the Chancellor of the Exchequer what information he has from Inland Revenue as to how many children are cared for in work place nurseries in respect of which tax is payable.

The Financial Secretary to the Treasury (Mr. Norman Lamont)

I regret that this informaton is not available centrally.

Mr. Clelland

The Minister will be aware, of course, that the tax exists. Is it not a further penalty on people with children? Will he confirm that the Government will abolish the tax on work place care, take a lesson from the Treasury and positively promote work place care among employers throughout the country?

Mr. Lamont

The Treasury scheme is self-financing, which should not surprise the hon. Gentleman. No tax charge arises. I am sure that the hon. Gentleman recognises that if employers wish to recruit married women there is no reason why they should not pay them the necessary rate, including the costs of child care. The availability of child care facilities is a substantial benefit. It is a long-standing principle of the tax system that we do not give tax relief for what is necessary to enable people to get to work.

Mr. Marlow

If we are to give tax benefits for creches, where will it all end? Are we to give tax allowances against nannies?

Mr. Lamont

I take it that that was a Budget representation from my hon. Friend, and it is noted.

Mr. Chris Smith

Is it not the case that the income derived by the Exchequer from the taxation of work place nursery provision is small, whereas the deterrent to women with child care responsibilities is enormous? Should we not encourage women with children to seek employment rather than deter them? Can the Financial Secretary assure us that the Chancellor will consider two specific measures in his Budget—first, the removal of taxation from the receipt of work place nursery provision and, secondly, fiscal incentives to employers to provide nurseries?

Mr. Lamont

As the hon. Gentleman knows, all aspects of the tax system are reviewed, especially at this time of year. I cannot agree with the hon. Gentleman that there is any evidence that tax treatment deters married women from going to work, given the tremendous growth in the number of married women at work and, indeed, the considerable and continuing growth in such facilities.