Tax Relief For Public Transport Motion - 27/01/21
Cllr Meena Minnis moves a motion calling for tax relief for Metrolink users.
Encouraging public transport use through employer-linked season ticket
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:
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.