Schedule 12 - Mileage allowances
Finance Bill
10:45 am
Mr Michael Jack (Fylde, Conservative)
Thank you for your helpful clarification, Mr. O'Hara. Paragraph 3 describes the car as a mechanically propelled vehicle. There are new technologies in the wings—electrically driven vehicles, for example—that may not necessarily be mechanical in the same sense as a petrol engine vehicle. [Interruption.] I am disappointed that there is so much carping comment from the Labour Benches. I should have thought that hon. Members would be interested in ensuring that the proposals covered the new forms of environmentally friendly technology. I merely wanted the Financial Secretary to make a statement on the record that electric, or petrol-electric, vehicles were covered by the measure.
With reference to the mileage allowances in paragraph 4, the Financial Secretary cited figures from the AA that indicated a running cost of 18p per mile. He did not say what was in the 18p, and therefore whether, in the context of the first 10,000 miles, the remaining 22p was adequate compensation for the depreciation and other costs not included in the 18p. Can he give a source for the Treasury's figure of 22p? People like to know how the numbers are calculated. Finally, can he say why 10,000 miles was selected, rather than any other distance?