§ Mr. Elliotasked the Chancellor of the Exchequer whether any further consideration has been given to the possibility of an Exchequer grant to the Members' Fund.
§ Mr. P. ThorneycroftOn 12th July last Sir Anthony Eden stated that if the Trustees of the Members' Fund wished to propose an increase in the maximum grants and the total income limits within which grants may be made, and if such increase could not be met from the present revenue of the Fund, sympathetic consideration would be given to the possibility of an Exchequer grant.
I understand that it is the intention of the Trustees to move at an early date a resolution to provide for higher maximum 115W grants and total income limits. Estimates of the cost of these improvements have been furnished by the Government Actuary and it is clear that they could not be effected without a substantial increase in the present annual income of the Fund.
The Government accordingly propose to make an annual grant of £10,000 per annum to the Fund. An enabling Bill will be introduced at the first convenient opportunity. Pending legislation provision is being made in the Estimates for the House of Commons Vote for 1957–58 —to be published on 12th March—so that the Trustees may introduce the new scales, if the House approves, with effect from 1st April, 1957.
As the Fund will in future be financed from the Exchequer grants and from contributions by Members, which qualify for relief from Income Tax, it would not be right that the benefits should continue to be disregarded for tax purposes. It is proposed therefore to include in the 116W Finance Bill provision bringing them within the pay-as-you-earn system, with effect from the beginning of the next financial year. Tax will not of course be payable unless the recipient's total income is above the exemption limit.