asked the Chancellor of the Exchequer when the earning minimum of £8,500 for the assessment of fringe benefits under schedule E for higher paid employees was set; what that minimum would be if it were adjusted to take account of the subsequent inflation; and what would be the estimated cost to the Revenue of making such an adjustment.

The figure of £8,500 first applied for the year 1979–80. The corresponding current level, if subsequent inflation were allowed for, would be about £11,800.To raise the limit to this level would cost about £25 million in a full year at 1982–83 levels of income and tax rates. This figure takes no account of changes in relation to car fuel which have effect from 1983–84.