§ Ms. HarmanTo ask the Chancellor of the Exchequer what has been the cost to the Treasury of tax relief on employer-provided child care in(a) 1990–91, (b) 1991–92 and (c) 1992–93; and what are his estimates for the cost in 1993–94.
§ Mr. DorrellThe revenue cost of exempting employer-provided child care is estimated to be about £10 million for each of the years 1990–91, 1991–92 and 1992–93. The revenue cost for 1993–94 would depend on the level of provision.
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§ Ms. HarmanTo ask the Chancellor of the Exchequer what would be the effect on Treasury revenue in 1993–94 of extending tax relief on employer-provided child care to(a) employer-provided cheques and vouchers for child care and (b) all forms of employer assistance for child care.
§ Mr. DorrellExempting all existing employer assistance for child care would have a revenue cost, at 1992–93 levels of provision and subsidies, of approximately £5 million. There is insufficient information to subdivide this estimate. We expect that if such a measure were introduced there would be substantial behavioural effects.