Agenda item

Motion Submitted by the Liberal Democrats Group - Encouraging Public Transport Use Through Employer-linked Season Ticket Purchases

 

“This Council notes that:

 

In his article for the Daily Telegraph ‘Tax Relief just the Ticket’ (6 October 2013), journalist Boris Johnson called for employees to be ‘allowed to pay for their season tickets from their pre-tax income.’

 

Mr Johnson advocated for the introduction of a new tax relief scheme, limited to the basic rate, whereby ‘the employer would buy the season ticket and deduct the cost from his or her (employee’s) pay packet – and only then would the employee be assessed for tax.’

 

The impact of such a scheme would mean that employees would have less taxable income reducing their liability for income tax and national insurance and the employer would also save on national insurance contributions.

 

An Annual Metrolink ticket from Altrincham to the City Centre costs a commuter £1,154.

 

A Northern Rail season train ticket from Urmston to Oxford Road costs a commuter £944.

 

Such a scheme would represent a significant financial incentive for working Trafford residents who need to commute to resume public transport when they feel safe to do so in greater numbers.

 

Council further notes that:

 

Now Mr Johnson is Prime Minister he has it within his power to put his aspirations for tax relief on seasonal travel tickets into practice.

 

Council resolves to:

 

Ask the Chief Executive to write to the Prime Minister and Chancellor of the Exchequer to request that the Government introduces a scheme for commuters to have the cost of public transport season tickets.

Minutes:

(Note: Before consideration of the next matter, the time being 9:07 p.m., the Deputy Mayor indicated that speeches on this item of business would be limited to a maximum of one minute per speaker.)

 

It was moved and seconded that:

 

“This Council notes that:  

 

In his article for the Daily Telegraph ‘Tax Relief just the Ticket’ (6 October 2013), journalist Boris Johnson called for employees to be ‘allowed to pay for their season tickets from their pre-tax income.’  

 

Mr Johnson advocated for the introduction of a new tax relief scheme, limited to the basic rate, whereby ‘the employer would buy the season ticket and deduct the cost from his or her (employee’s) pay packet – and only then would the employee be assessed for tax.’ 

 

The impact of such a scheme would mean that employees would have less taxable income reducing their liability for income tax and national insurance and the employer would also save on national insurance contributions.

 

An Annual Metrolink ticket from Altrincham to the City Centre costs a commuter £1,154. 

 

A Northern Rail season train ticket from Urmston to Oxford Road costs a commuter £944. 

 

Such a scheme would represent a significant financial incentive for working Trafford residents who need to commute to resume public transport when they feel safe to do so in greater numbers.

 

Council further notes that:  

 

Now Mr Johnson is Prime Minister he has it within his power to put his aspirations for tax relief on seasonal travel tickets into practice. 

 

Council resolves to:

 

Ask the Chief Executive to write to the Prime Minister and Chancellor of the Exchequer to request that the Government introduces a scheme for commuters to have the cost of public transport season tickets deducted from their pre-tax income, following the principles outlined in Mr Johnson’s Telegraph article in 2013.”

 

Following a debate on the matter, the Motion was agreed by the general consent of the Council.

 

RESOLVED: That this Council notes that:  

 

In his article for the Daily Telegraph ‘Tax Relief just the Ticket’ (6 October 2013), journalist Boris Johnson called for employees to be ‘allowed to pay for their season tickets from their pre-tax income.’  

 

Mr Johnson advocated for the introduction of a new tax relief scheme, limited to the basic rate, whereby ‘the employer would buy the season ticket and deduct the cost from his or her (employee’s) pay packet – and only then would the employee be assessed for tax.’ 

 

The impact of such a scheme would mean that employees would have less taxable income reducing their liability for income tax and national insurance and the employer would also save on national insurance contributions.

 

An Annual Metrolink ticket from Altrincham to the City Centre costs a commuter £1,154. 

 

A Northern Rail season train ticket from Urmston to Oxford Road costs a commuter £944. 

 

Such a scheme would represent a significant financial incentive for working Trafford residents who need to commute to resume public transport when they feel safe to do so in greater numbers.

 

Council further notes that:  

 

Now Mr Johnson is Prime Minister he has it within his power to put his aspirations for tax relief on seasonal travel tickets into practice. 

 

Council resolves to:

 

Ask the Chief Executive to write to the Prime Minister and Chancellor of the Exchequer to request that the Government introduces a scheme for commuters to have the cost of public transport season tickets deducted from their pre-tax income, following the principles outlined in Mr Johnson’s Telegraph article in 2013.