§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will make a statement on the discussions which have been ensuing with the Civil Service unions concerning the taxation of their expenses and reimbursements; what agreement or proposals have been arrived at; and whether any such agreements will be in accordance with those applying in all respects to all taxpayers.
§ Mr. RidleyI regret the delay in answering the hon. Member's question. A review by the Inland Revenue of certain allowances paid to civil servants to cover expenses incurred as part of their jobs has shown that a very small number of these, hitherto paid tax-free, are according to the law taxable. The Civil Service unions have, of course, been informed and have made representations, but no decision has yet been taken as to what consequential adjustment, if any, should be made to the sums payable. The Government are determined that civil servants should be treated in the same way as other taxpayers.