Luncheon Vouchers

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 24 November 1970.

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Photo of Mr Piers Dixon Mr Piers Dixon , Truro 12:00, 24 November 1970

asked the Chancellor of the Exchequer what figure in 1970 represents the purchasing power of 3s. in 1957; and whether he will take steps to authorise luncheon vouchers to be allowable up to this figure for tax purposes.

Photo of Mr Maurice Macmillan Mr Maurice Macmillan , Farnham

About 4s. 6d. My right hon. Friend has no plans for raising the limit on non-taxable luncheon vouchers.

Photo of Mr Piers Dixon Mr Piers Dixon , Truro

In the present condition of fast-increasing inflation, most of which derives from the policies of the Labour Government, is not this yet another example to show that all too often it is not the wicked boss who suffers, because he can frequently look after himself, but that the sufferers under Labour-induced inflation are his poor typist and office boy?

Photo of Mr Maurice Macmillan Mr Maurice Macmillan , Farnham

Yes, but I must remind my hon. Friend that the luncheon vouchers have never been intended to pay the full cost of a meal. It is a concession which is worth a considerable amount, the equivalent of a tax-free payment of about £35 a year.

Photo of Mr John Boyd-Carpenter Mr John Boyd-Carpenter , Kingston upon Thames

Is not the point of the concession to give people who have not the advantage of a subsidised canteen a comparable advantage, and if 3s. was fair in 1957 must not it necessarily be unfair today?

Photo of Mr Maurice Macmillan Mr Maurice Macmillan , Farnham

If my right hon. Friend compares the value of many canteen meals, he will find perhaps that this is a reversal of a previous unfairness rather than a new unfairness.

Mr. J. T. Price:

Since the hon. Gentleman has repeated the hoary old slander that inflation in this country is due to the Labour Government, can the Chief Secretary tell the House why, in that event, there is inflation in the United States of America, Germany, France and other European countries where there is not a Labour Government? Why do they suffer from the same disease under Tory Governments?

Photo of Mr Maurice Macmillan Mr Maurice Macmillan , Farnham

I am delighted at the hon. Gentleman's suggestion that the Labour Government should have such a wide influence, but I cannot accept that.