§ Section eight of the Finance Act, 1931 (which relates to the payment of Income Tax by instalments), is hereby repealed, and Sub-section (2) of Section one hundred and fifty-seven of the Income Tax Act, 1918, shall have effect as originally enacted.—[Mr. Morgan Jones.]
§ Brought up, and read the First time.
§ Mr. MORGAN JONESI beg to move, "That the Clause be read a Second time."
1958 4.30 p.m.
I think the substance of this Clause will be apparent to hon. Members in all parts of the House. It will be recollected that in the Finance Act of last year it was made incumbent upon Income Tax payers to pay three-quarters of their tax in the first half-year, and one-quarter in the second half-year. That was a departure from the principle laid down in the Income Tax Act, 1918, whereby, although the Income Tax was in fact due on the 1st January of each year, arrange- 1959 ments were made that it should be actually payable in two instalments, one in January and one in July. We think that everyone representing all sorts of Income Tax payers-both the upper and the middle classes, and also the lower middle class, to whom the right hon. Gentleman referred a few minutes ago- will feel that, in these days of very substantial industrial depression and of financial difficulty to individuals, this arrangement of last year might involve a considerable measure of embarrassment to individual Income Tax payers. We feel, therefore, that, in view of the circumstances of the time, circumstances which this year may, perhaps, be even harder than they were last year, the case for a reversion to the 1918 form of procedure is sufficiently overwhelming to invite the cordial assent of the House.
§ Major ELLIOTIt is undoubtedly a very good thing that the House should realise the difficulties in which direct taxpayers are placed. Reinforced from the source from which we have just heard it, it is all the more welcome. But I will not twit hon. and right hon. Gentlemen opposite with the fact that it was they who imposed the original collection of five quarters of the tax in four quarters of the year. I will merely say that we all realise that that was a strain on the taxpayers. In the future, of course, that strain will not be so heavy, because the collection of the tax will still be four quarters of the tax in four quarters of the year. The real strain came from five quarters of the tax in four quarters of the year far more than the fact that three-quarters is collected in one period and only one-quarter in another. The immediate proposal before us is that
§ direct taxpayers under Schedule A and also individuals under Schedules B, D and E should only pay three-quarters of their Income Tax this year. That is a consummation devoutly to be wished, but it would cost us £15,000,000 in the present year. And if Schedule A is included, as it is as the Clause is drafted, it would cost £38,000,000 this year. In these circumstances, I am sure hon. and right hon. Gentlemen opposite will realise that, while we greatly appreciate the suggestion which they have put forward, it is not within the bounds of possibility for the Chancellor of the Exchequer to assent to it in the current year.
§ Mr. GRUNDYI am very sorry that the Financial Secretary to the Treasury has so little to say about the matter. It seems to mo a matter of simple justice. The payment of three-quarters of the Income Tax in the first half of the year has been and is a very great hardship indeed to those who have to pay Income Tax. We are simply asking, as a measure of justice, that we should revert to the old system and that Income Tax should be paid in two equal instalments. By reducing the limit from £225 to £150 you have shorn the sheep pretty close to the skin. I am not sure you have not taken some of the skin. We might at least have expected more favourable consideration than has been given to the Clause. We are really asking the Financial Secretary to temper the wind to the lambs after the Chancellor of the Exchequer has shorn them very closely and to allow them to pay in two half yearly instalments.
§ Question put, "That the Clause be read a Second time."
§ The House divided: Ayes, 42; Noes, 319.
1963| Division No. 219.] | AYES. | [4.36 p.m. |
| Adams, D. M. (Poplar, South) | Grundy, Thomas W. | McGovern, John |
| Attlee, Clement Richard | Hall, F. (York, W. R., Normanton) | Maclean, Neil (Glasgow, Govan) |
| Batey, Joseph | Hall, George H. (Mertnyr Tydvil) | Parkinson, John Allen |
| Bevan, Aneurin (Ebbw Vale) | Healy, Cahir | Price, Gabriel |
| Brown, C. W. E. (Notts., Mansfield) | Hicks, Ernest George | Salter, Dr. Alfred |
| Buchanan, George | Hirst, George Henry | Thorne, William James |
| Cocks, Frederick Seymour | Jenkins, Sir William | Tinker, John Joseph |
| Cove, William G. | Jones, J. J. (West Ham, Silvertown) | Wallhead, Richard C. |
| Daggar, George | Jones, Morgan (Caerphilly) | Williams, David (Swansea, East) |
| Davies, Rhys John (Westhoughton) | Kirkwood, David | Williams, Edward John (Ogmore) |
| Duncan, Charles (Derby, Claycross) | Lansbury, Rt. Hon. George | Williams, Dr. John H. (Lianelly) |
| Edwards, Charles | Leonard, William | Williams, Thomas (York, Don Valley) |
| Greenwood, Rt. Hon. Arthur | Logan, David Gilbert | |
| Grenfell, David Rees (Glamorgan) | Lunn, William | TELLERS FOR THE AYES.— |
| Griffiths, T. (Monmouth, Pontypool) | Macdonald, Gordon (Ince) | Mr. John and Mr. Groves. |
| NOES. | ||
| Acland-Troyte, Lieut.-Colonel | Duggan, Hubert John | Law, Sir Alfred |
| Adams, Samuel Vyvyan T. (Leeds, W.) | Duncan, James A. L. (Kensington, N.) | Law, Richard K. (Hull, S.W.) |
| Allen, Lt.-Col. J. Sandeman (B'k'nh'd.) | Dunglass, Lord | Leech, Dr. J. W. |
| Allen, William (Stoke-on-Trent) | Eden, Robert Anthony | Lees-Jones, John |
| Amery, Rt. Hon. Leopold C. M. S. | Edmondson, Major A. J. | Leighton, Major B. E. P. |
| Applin, Lieut.-Col. Reginald V. K. | Elliot, Major Rt. Hon. Walter E. | Lennox-Boyd, A. T. |
| Apsley, Lord | Ellis, Sir R. Geoffrey | Levy, Thomas |
| Astbury, Lieut.-Com. Frederick Wolfe | Elliston, Captain George Sampson | Liddall, Walter S. |
| Atholl, Duchess of | Elmley, Viscount | Lindsay, Noel Ker |
| Bailey, Eric Alfred George | Emmott, Charles E. G. C. | Llewellin, Major John J. |
| Balfour, Capt. Harold (I. of Thanet) | Emrys-Evans, P. V. | Llewellyn-Jones, Frederick |
| Balniel, Lord | Entwistle, Cyril Fullard | Lloyd, Geoffrey |
| Barclay-Harvey, C. M. | Erskine-Bolst, Capt. C. C. (Blackpool) | Locker-Lampson, Rt. Hn. G. (Wd. Gr'n) |
| Barton, Capt. Basil Kelsey | Essenhigh, Reginald Clare | Lockwood, John C. (Hackney, C.) |
| Beauchamp, Sir Brograve Campbell | Evans, Capt. Ernest (Welsh Univ.) | Loder, Captain J. de Vere |
| Bennett, Capt. Sir Ernest Nathaniel | Evans, R. T. (Carmarthen) | Lovat-Fraser, James Alexander |
| Bird, Ernest Roy (Yorks., Skipton) | Everard, W. Lindsay | Lumley, Captain Lawrence R. |
| Boothby, Robert John Graham | Falle, Sir Bertram G. | Lyons, Abraham Montagu |
| Borodale, Viscount | Ferguson, Sir John | Mabane, William |
| Bower, Lieut.-Com. Robert Tatton | Fermoy, Lord | MacDonald, Malcolm (Bassetlaw) |
| Bowyer, Capt. Sir George E. W. | Fielden, Edward Brockiehurst | Macdonald, Capt. P. D. (I. of W.) |
| Boyce, H. Leslie | Foot, Isaac (Cornwall, Bodmin) | McEwen, Captain J. H. F. |
| Braithwaite, Maj. A. N. (Yorks, E. R.) | Ford, Sir Patrick J. | McKeag, William |
| Braithwaite J. G. (Hillsborough) | Fremantle, Sir Francis | McKie, John Hamilton |
| Briscoe, Capt. Richard George | Fuller, Captain A. Q. | Maclay, Hon. Joseph Paton |
| Brockiebank, C. E. R. | Ganzoni, Sir John | McLean, Major Alan |
| Brown, Ernest (Leith) | Gault, Lieut.-Col. A. Hamilton | McLean, Dr. W. H. (Tradeston) |
| Brown, Brig.-Gen. H. C. (Berks., Newb'y) | Gillett, Sir George Masterman | Macquisten, Frederick Alexander |
| Buchan, John | Gledhill, Gilbert | Magnay, Thomas |
| Buchan-Hepburn, P. G. T. | Glossop, C. W. H. | Makins, Brigadier-General Ernest |
| Burghley, Lord | Gluckstein, Louis Halle | Mallalieu, Edward Lancelot |
| Burnett, John George | Glyn, Major Ralph G. C. | Manningham-Buller, Lt.-Col. Sir M. |
| Cadogan, Hon. Edward | Goff, Sir Park | Margesson, Capt. Henry David R. |
| Campbell, Edward Taswell (Bromley) | Goodman, Colonel Albert W. | Marsden, Commander Arthur |
| Campbell, Rear-Admiral G. (Burnley) | Gower, Sir Robert | Mason, David M. (Edinburgh, E.) |
| Campbell-Johnston, Malcolm | Graham, Fergus (Cumberland, N.) | Mayhew, Lieut.-Colonel John |
| Caporn, Arthur Cecil | Grattan-Doyle, Sir Nicholas | Merriman, Sir F. Boyd |
| Castle Stewart, Earl | Graves, Marjorie | Mills, Sir Frederick (Leyton, E.) |
| Cautley, Sir Henry S. | Greaves-Lord, Sir Walter | Mills, Major J. D. (New Forest) |
| Cayzer, Maj. Sir H. R. (P'rtsm'th, S.) | Gretton, Colonel Rt. Hon. John | Milne, Charles |
| Cazalet, Thelma (Islington, E.) | Griffith, F. Kingsley (Middlesbro', W.) | Milne, Sir John S. Wardlaw- |
| Chalmers, John Rutherford | Grimston, R. V. | Mitchell, Sir W. Lane (Streatham) |
| Chamberlain, Rt. Hon. Sir J. A. (Birm., W) | Gritten, W. G. Howard | Molson, A. Hugh Eisdale |
| Choriton, Alan Ernest Leofric | Guinness, Thomas L. E. B. | Moreing, Adrian C. |
| Chotzner, Alfred James | Gunston, Captain D. W. | Morrison, William Shepherd |
| Christie, James Archibald | Guy, J. C. Morrison | Moss, Captain H. J. |
| Churchill, Rt. Hon. Winston Spencer | Hamilton, Sir George (Ilford) | Muirhead, Major A. J. |
| Clarke, Frank | Hamilton, Sir R. W.(Orkney & Ztl'nd) | Munro, Patrick |
| Clarry, Reginald George | Hanbury, Cecil | Nail-Cain, Arthur Ronald N. |
| Clayton, Dr. George C. | Hanley, Dennis A. | Nation, Brigadier-General J. J. H. |
| Clydesdale, Marquess of | Hartland, George A. | Newton, Sir Douglas George C. |
| Cobb, Sir Cyril | Harvey, George (Lambeth, Kenn'gt'n) | Nicholson, Godfrey (Morpeth) |
| Cochrane, Commander Hon. A. D. | Harvey, Major S. E. (Devon, Totnes) | Nicholson, Rt. Hn. W. G. (Petersf'ld) |
| Colfox, Major William Philip | Haslam, Henry (Lindsay, H'ncastle) | North, Captain Edward T. |
| Collins, Sir Godfrey | Haslam, Sir John (Bolton) | Nunn, William |
| Colman, N. C. D. | Hellgers, Captain F. F. A. | O'Neill, Rt. Hon. Sir Hugh |
| Colville, John | Henderson, Sir Vivian L. (Cheimsf'd) | Ormiston, Thomas |
| Conant, R. J. E. | Heneage, Lieut.-Colonel Arthur P. | Palmer, Francis Noel |
| Cook, Thomas A. | Hepworth, Joseph | Peake, Captain Osbert |
| Cooke, Douglas | Hills, Major Rt. Hon. John Walter | Pearson, William G. |
| Copeland, Ida | Hore-Belisha, Leslie | Penny, Sir George |
| Courtauld, Major John Sewell | Hornby, Frank | Percy, Lord Eustace |
| Craddock, Sir Reginald Henry | Horobin, Ian M. | Perkins, Walter R. D. |
| Cranborne, Viscount | Horsbrugh, Florence | Petherick, M. |
| Craven-Ellis, William | Hudson, Capt. A. U. M. (Hackney, N.) | Peto, Sir Basil E. (Devon, Barnstaple) |
| Croft, Brigadier-General Sir H. | Hume, Sir George Hopwood | Peto, Geoffrey K.(W'verh'pt'n, Bliston) |
| Crooke, J. Smedley | Hunter. Capt. M. J. (Brigg) | Pickering, Ernest H. |
| Crookshank, Col. C. de Windt (Bootle) | Hurd, Sir Percy | Pike, Cecil F. |
| Crookshank, Capt. H. C. (Gainsb'ro) | Hutchison, W. D. (Essex, Romf'd) | Potter, John |
| Crossley, A. C. | Jackson, Sir Henry (Wandsworth, C.) | Powell, Lieut.-Col. Evelyn G. H. |
| Cruddas, Lieut.-Colonel Bernard | Jackson, J. C. (Heywood & Radcliffe) | Procter, Major Henry Adam |
| Culverwell, Cyril Tom | James, Wing.-Com. A. W. H. | Pybus, Percy John |
| Curry, A. C. | Janner, Barnett | Raikes, Henry V. A. M. |
| Davies, Maj. Geo. F.(Somerset, Yeovil) | Jesson, Major Thomas E. | Ramsay, Capt. A. H. M. (Midlothian) |
| Davison, Sir William Henry | Joel, Dudley J. Barnato | Ramsay, T. B. W. (Western Isles) |
| Denman, Hon. R. D. | Jones, Lewis (Swansea, West) | Ramsbotham, Herwald |
| Denville, Alfred | Ker, J. Campbell | Ramsden, E. |
| Dickie, John P. | Kerr, Hamilton W. | Ratcliffe, Arthur |
| Dixey, Arthur C. N. | Kimball, Lawrence | Rathbone, Eleanor |
| Donner, P. W. | Knatchbull, Captain Hon. M. H. R. | Ray, Sir William |
| Drewe, Cedric | Knebworth, Viscount | Rea, Walter Russell |
| Duckworth, George A. V. | Knox, Sir Alfred | Reed, Arthur C. (Exeter) |
| Dugdale, Captain Thomas Lionel | Lamb, Sir Joseph Quinton | Reid, James S. C. (Stirling) |
| Reid, William Allan (Derby) | Somerville, Annesley A. (Windsor) | Todd, Capt. A. J. K. (B'wick-on-T.) |
| Remer, John R. | Soper, Richard | Todd, A. L. S. (Kingswinford) |
| Reynolds, Col. Sir James Philip | Sotheron-Estcourt, Captain T. E. | Touche, Gordon Cosmo |
| Robinson, John Roland | Southby, Commander Archibald R. J. | Tryon, Rt. Hon. George Clement |
| Rosbotham, S. T. | Spears, Brigadier-General Edward L. | Turton, Robert Hugh |
| Ross, Ronald D. | Spencer, Captain Richard A. | Wallace, Captain D. E. (Hornsey) |
| Ross Taylor, Walter (Woodbridge) | Spender-Clay, Rt. Hon. Herbert H. | Wallace, John (Dunfermline) |
| Runge, Norah Cecil | Stanley, Lord (Lancaster, Fylde) | Ward, Lt.-Col. Sir A. L. (Hull) |
| Russell, Albert (Kirkcaldy) | Stevenson, James | Ward, Irene Mary Bewick (Wallsend) |
| Russell, Alexander West (Tynemouth) | Stones, James | Warrender, Sir Victor A. G. |
| Russell, Hamer Field (Sheffield, B'tside) | Stourton, Hon. John J. | Waterhouse, Captain Charles |
| Salmon, Major Isidore | Strauss, Edward A. | Wayland, Sir William A. |
| Salt, Edward W. | Strickland, Captain W. F. | Wedderburn, Henry James Scrymgeour- |
| Samuel, Sir Arthur Michael (F'nham) | Sueter, Rear-Admiral Murray F. | Wells, Sydney Richard |
| Sandeman, Sir A. N. Stewart | Sugden, Sir Wilfrid Hart | Weymouth, Viscount |
| Sanderson, Sir Frank Barnard | Sutcliffe, Harold | Whiteside, Borras Noel H. |
| Savery, Samuel Servington | Tate, Mavis Constance | Williams, Charles (Devon, Torquay) |
| Scone, Lord | Taylor, Vice-Admiral E. A. (P'dd'gt'n, S.) | Williams, Herbert G. (Croydon, S.) |
| Selley, Harry R. | Templeton, William P. | Wills, Wilfrid D. |
| Shakespeare, Geoffrey H. | Thomas, James P. L. (Hereford) | Windsor-Clive, Lieut.-Colonel George |
| Shaw, Helen B. (Lanark, Bothwell) | Thomas, Major L. S. (King's Norton) | Worthington, Dr. John V. |
| Simmonds, Oliver Edwin | Thomson, Sir Frederick Charles | Wragg, Herbert |
| Smiles, Lieut.-Col. Sir Walter D. | Thorp, Linton Theodore | |
| Smith-Carington, Neville W. | Titchfield, Major the Marquess of | TELLERS FOR THE NOES.— |
| Mr. Womersley and Lord Erskine. |
§ Mr. SPEAKERThe next new Clause I shall take is that (Duties on coffee and cocoa) standing in the name of the right hon. Gentleman the Member for Spark-brook (Mr. Amery).
§ Mr. T. WILLIAMSMay I ask whether the new Clause (Reduction of club duty) in the name of my hon. Friend the Member for East Woolwich (Mr. Hicks) is not to be taken? It is regarded in certain quarters as being fairly important. It was not called during the Committee stage, and it is thought by many hon. Members that the point raised in the proposed new Clause is of sufficient importance at any rate to be ventilated in view of certain other Sections contained in the Finance Bill. May I ask, therefore, whether a case may not be stated why the Clause should be called?
§ Mr. SPEAKERI am afraid that I came to the conclusion that I would not select it.