Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of the value of salary sacrifice company cars to employers in the public sector for (a) recruiting and (b) retaining for staff.

The Government has recently consulted on proposals to limit the range of benefits in kind, such as company cars, that attract income tax and National Insurance Contributions advantages when they are provided as part of salary sacrifice arrangements. Responses have been received from a wide range of interested parties and the Government’s response will be published in due course.

The Government is committed to encouraging company car drivers to take-up the driving of ultra-low emissions vehicles. A separate consultation published on 10 August sets out proposals to incentivise the take up of low and ultra-low emissions company cars.