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Finance Bill

The severance scheme was set up under the GLA Act. Extending tax exemption to the scheme in the way that is envisaged would keep the scheme in line with others that we have mentioned. That was always the intention of the Act. The hon. Gentleman picks me up on a slightly loose use of the word ““bound””, and I take his point. The hon. Gentleman asked about the cost to the Exchequer. The cost is so small that, under usual budgetary cost accounting procedures, it is counted as zero in the Finance Bill, hence my earlier point. The total cost this year for six members standing down is about £151,700. My hon. Friend the Member for Wolverhampton, South-West (Rob Marris) asked whether I had details of the budget; I do not have those details to hand, but I will write to him on the subject when I have had the chance to consider his comments in detail in Hansard. The clause is designed to settle the tax treatment of the resettlement grants that may be paid to the Mayor or members of the London assembly if they cease to hold office at the time of an election. The amendment would mean that the clause could have no practical effect until the 2012 elections. It would also mean that the first payments under the scheme were wholly taxable as earnings, rather than treated as termination payments, the first £30,000 of which are tax-exempt. That would be unfair and churlish, given the treatment of Westminster MPs and Members of the devolved Assemblies. I hope that the current Mayor of London continues in his post for many years and has no need to avail himself of the measures, but I do believe that the Committee should put the measures in place. I therefore ask the hon. Member for Runnymede and Weybridge to withdraw his amendment.