§ Mr. Dewar
To ask the Chancellor of the Exchequer if he will estimate the effect on revenues in 1994–95 and in a full year of extending the income tax exemption for workplace nurseries as a benefit in kind to(a) child care cheques and vouchers and (b) other employer assistance into child care; and what the effects would be if the relief were limited to the basic rate.121W
§ Mr. Dorrell
Exempting all forms of existing employer assistance for child care would have a revenue cost at 1993–94 levels of provision and subsidies of approximately £5 million. There is insufficient information to sub-divide this estimate. If such a measure were introduced there would be substantial behavioural effects.