§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will circulate a table in the Official Report showing (a) how many private cars are provided by companies to their employees, (b) how many of these hive been brought into the tax net as executive cars, (c) the extent to which analogues employed by central government are provided with equal facilities and (d) what, if any, adjustment is made to Civil Service pay to take account of any difference in treatment.
§ Mr. Peter ReesThe information is as follows:
- (a) Precise information is not available but it is thought that about 1½ million company cars are provided by companies for their employees and directors.
- (b) The latest available information relates to 1977–78. For that year, under the legislation governing the taxation of benefits provided for higher-paid employees and directors; the benefit from about 500,000 company cars was charged to tax.
- (c) No private cars are provided by the Central Government for their employees.
- (d) When the pay research system is operative, civil servants' pay is based on comparisons with the pay and other conditions of service of "analogue" employees undertaking similar work in outside organisations. The benefit to the "analogue" of a free car is assessed in terms of what it would cost him to buy and run a similar car of his own, taking full account of taxation.