§ Mr. Trotterasked the Chancellor of the Exchequer what is the reason for the change to be made in the taxation of the allowances paid to civil servants; when the allowances concerned were first paid; how many people are now receiving them, and, on an annual basis; and what are (a) the ranges of the allowances, (b) the total sums involved and (c) his estimate of the extra revenue to be received by the Exchequer by the change in taxation on them.
§ Mr. RidleyMost of the allowances affected have been in payment for many years, but not necessarily to the current recipients. The most recent of the allowances affected was introduced in 1972. It is estimated that about 5,500 staff are receiving the allowances under consideration. The amounts involved range from £22.40 a year to £6,900 a year and are thought to total about £10 million a year. (The figure of £250 million quoted in the press is the total annual cost of travel and subsistence in central Government.) The tax treatment of these allowances has been raised as part of a routine review and is under consideration. I shall write to my hon. Friend when it has been resolved.