§ Mr. Farrasked the Chancellor of the Exchequer if, in view of the fact that the new taxable £208 per annum mobility allowance for disabled persons on the standard rate of tax is only worth another £6.36p per annum when compared with the old tax free car allowance of £100 per annum, he will make the new mobility allowance tax free.
§ Mr. Robert SheldonNo. Making the mobility allowance subject to tax means that it benefits most those with the smallest incomes. Where a person is liable to tax at the basic rate the new allowance, which is available to a much wider range of disabled persons than was the car allowance it has replaced, is worth £39.36 a year more than the old car allowance.