§ Mr. Meacherasked the Chancellor of the Exchequer what has been the total of tax relief granted in each year since 1960, respectively, for life assurance premiums, mortgage interest tax relief, employers' and employees' contributions
Estimated cost £ million Life assurance relief Mortgage interest relief† Approved pension schemes‡ Employers' contributions to approved pension schemes‡ Retirement annuity relief Age allowance 1960–61 53 70 — — — — 1961–62 58 75 — — — — 1962–63 61 75 — — 6½ — 1963–64 64 90 — — 6½ — 1964–65 66 110 — — 6½ — 1965–66 68 135 — — 7 — 1966–67 70 155 — — 7¾ — 1967–68 75 180 — — 9¼ — 1968–69 84 195 — — 9¼ — 1969–70 100 235 — — 10 — 1970–71 110 285 150 250 12 — 1971–72 120 310 150 250 15¾ — 1972–73 130 365 170 300 N.A. — 1973–74 140 510 250 400 30 — 1974–75 157 695 340 550 N.A. — 1975–76 185 895 400 650 50 215 ,976–77 200 1,090 400 750 60 295 1977–78 240 1,040 400 850 65 260 1978–79 260 1,110 500 1,000 70 265 1979–80 415* 1,400 500 1,150 100 300 * For 1979–80 relief for life assurance is given by deduction from the premiums payable to the life assurance company and not in the computation of income tax as in former years. † The estimate for mortgage interest relief incorporates qualifying interest paid on bank loans which is not readily distinguishable in Inland Revenue statistics. ‡ The loss of revenue from granting tax relief to approved pension schemes has been calculated on the basis set out in the inland Revenue's note of February 1978 to the General Sub-Committee of the Expenditure Committee of House of Commons—second report 1977–78, appendix 15. The figures shown under the heading "approved pension schemes" include the cost of relief for employees' contributions, the cost of exempting funds' investment income and tax payable on pensions under these alternative arrangements, net of tax now payable on pensions. Employers' contributions in general qualify as a deduction as part of overall labour costs, under the normal rules for computation of profits. If, however, these contributions were made not deductible in calculating profits, the extra tax estimated to be payable by employers is shown separately in the table. I regret that information prior to 1970 is not available, nor has it been possible to allocate the cost amongst income groups. All these figures are subject to a wide margin of error. It has been assumed for the purpose of these calculations that there would be no change in the nature and rate of pension provision, despite the large amounts of additional liability to tax.