PROPERTY TAX IN SCOTLAND. (Hansard, 16 February 1810)

The Lord Advocate
of Scotland rose, to move for the production of certain papers relative to the produce of the taxes in Scotland. He had been induced to submit to the House a motion on the subject, from an assertion that had been made on a former occasion by the noble lord opposite, (Mahon), stating that the Property Tax of Scotland was by no means proportionably productive to that of England, or to the amount of the other taxes in Scotland. This mistake must have arisen from two grounds, to which he felt it his duty to call the attention of the House. In the first place, the noble lord had taken his estimate of the Income Tax in Scotland from the produce of 1806, when that duty was only 6½ per cent. and had compared it with that of England, of a subsequent year, when the duty was 10 per cent. A second ground of mistake, that had been entirely overlooked by the noble lord, was the circumstance of much of the Income Tax for Scotland being payable in England, and which of course being added to that of England, had a two-fold operation in producing this erroneous statement, adding to that of England what did not strictly belong to it, while it deducted from that of Scotland in the same proportion. From the papers he should move for, it would appear, that in 1808, the net assessment of the Income Tax was 800,000l. collected in Scotland; but, from the principle he had already laid down, it would be evident that a very considerable additional sum must be added to the amount for Scotland, though collected in England; such was every description of property in the funds, all East India stock, navy and exchequer bills, and in short every species of public stock, which must be very considerable.—While all this was necessarily deducted from the real produce of the Scotch property tax, it was at the same time added to that of England, and thus gave to England an amount that did not belong to it. The whole amount of the tax upon money paid to the army and navy, on half-pay and allowances to widows, with other monies of a similar description, came also under the head of England, as well as the different sources of emolument connected with India, and our other settlements. There were, besides, many goods manufactured in Scotland that were sold in England, the estimated returns upon which were likewise added to the amount for England. He 439 might add also the Stamp Office, the Post Office, and in general all stamp duties, which though levied in Scotland, were added to the assessment in England. In s fact, it would be difficult to ascertain how far this principle might be carried, nor did he think it would be of much importance to enquire. At any rate, he was of opinion that they could not allow less than 200,000l. that on this principle was to be added to the Income Tax of Scotland, and deducted of course from that of England, which would make the whole for Scotland amount to a million; and deducting that from the 11,300,000l. for England, would make the duty for Scotland amount to more than 1–11th of that for England, or about 1–12th of the whole of the United Kingdom. This would, at the same time, make a fair proportion of the Property Tax for Scotland to the whole of the other taxes arising from that part of the United Kingdom; namely, about 1–5th, the whole independent of the Property Tax being about four millions. The whole taxes for Scotland were now about 1–11th of those of England, and on looking back to the Union, it would be found that they had considerably increased in favour of Scotland, they being at that period only 1–14th of those of England. In 1800, the Assessed Taxes were only 1–18th, but were now 1–11th of those of England. His lordship concluded by moving, That there be laid before the House an account of the net assessment of the Property Tax for Scotland from 1803 to the latest period the same could be made out, distinguishing each year. Also an account of net assessment of the other duties, from the 24th of May 1800, to the latest period the same could be made out, distinguishing each year.

§ Lord Mahon
was ready to second the motion of the learned lord, and gave him credit for the clear manner in which he had made out his statement. He had made the observation that had been alluded to, from a conviction that the sum he noticed could not be the whole of the Property Tax for Scotland, and that there could not be possibly such a disproportion to that of England. The noble lord had accounted, in a considerable degree, for the disproportion, and he was glad that an enquiry was to take place.

§ Mr. H. Thornton
, adverting to the late collection of the Income Tax in Scotland, the duties of 1806 being only collecting, as appeared, id 1809, supposed that this 440 circumstance might be owing to the rents being sooner collected in England than in Scotland.

§ Mr. Horner
was of opinion, that some enquiry into this subject was desirable, and complained particularly of the slow remittance of the taxes from Scotland. He was not aware that rents were less expeditiously paid in Scotland than in this country, but the mode of collecting the taxes, he was afraid, was not so complete. In the county of Forfar alone, there were not less last year than from 2 to 3,000 appeals. The properly tax was collected from the tenantry, and proved the greater hardship, and a source of such oppression to that class of men.

The Solicitor General
for Scotland had the satisfaction to inform his hon. friend, that this subject had attracted the attention of government, and was at present under the consideration of his Majesty's ministers.

§ Mr. Huskisson
assured the House, that, while he had the honour of holding an office under the board of treasury its attention had been called to the subject, in consequence of the small remittances received from Scotland on account of the revenue of that country.