§ Mr. Trotter
asked the Chancellor of the Exchequer what he regards as "insignificant private mileage "in connection with tax liability for the use of a car from a pool; what percentage this would represent of total mileage; and whether there is any blanket upper limit on such private use.
§ Mr. Robert Sheldon,
pursuant to his reply [Official Report, 21st June 1976], gave the following information:
Per cent. United Kingdom Local authorities Central Government voted expenditure Capital expenditure Current expenditure Total 1972–73— (a) Increase forecast over 1971–72 in November 1971 (Cmnd. 4829) +6.2 +4.2 +4.9 -1.0 (b) Outturn +1.9 +8.1 +5.8 -0.1 1973–74— (a) Increase forecast over 1972–73 in December 1972 (Cmnd. 5178) +3.3 +5.3 +4.6 +3.1 (b) Outturn +7.7 +7.7 +7.7 +6.1 1974–75— (a) Increase forecast over 1973–74 in December 1973 (Cmnd. 5519) -14.5 +3.5 -2.8 -0.8 (b) Outturn +2.8 +8.7 +6.6 +6.2
(1) In the case of changes in classification or responsibility the figures have been adjusted to a comparable basis for the calculation of percentage increases. The figures shown for the increase from 1973–74 to 1974–75 are on the 1974–75 basis.
(2) All figures refer to public expenditure and ignore debt interest.
The excess of expenditure in 1974–75 over the estimates published by the previous administration in December 1974—in spite of the cuts announced as these estimates were published—reflects partly the new policies of the new administration and partly underestimation, particularly of the cost of the Conservative policy on nationalised industry prices.478W
The test to which the hon. Member refers, in connection with the use of a car from a pool under Clause 56(2) of the Finance Bill, is "incidental" private use. The question whether an employee's private use of a pool car is incidental to his other use of it will fall to be determined on the facts of each particular case.