§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)Yesterday I stated, in reply to the right hon. Baronet the Member for East Gloucestershire (Sir Michael Hicks-Beach), that I would, in Committee of Ways and Means, move certain Resolutions with reference to the Revenue. The right hon. Gentleman then asked me whether I had any objection to give at the present hour the heads of the statement which I should have to make in Committee. That is not a very usual thing to do, and I am not aware, indeed, that there is any precedent for it. But the convenience of the House, and that of hon. Members who take an interest in questions of this kind, may be a reason why, on this occasion, I shall, perhaps, be permitted by the House to depart from the ordinary practice. With that permission, I will make a short statement now, premising it by saying that I will enter into no argument whatever. In the first place, I will state what is our most recent estimate of the expenditure under the Vote of Credit, the necessary provision for which so greatly affects the Revenue of the year. I am able to say this—that if the state of affairs which led Her Majesty's Government to ask for the Vote of Credit should present an aspect which would justify the cessation of further preparations, we anticipate that about £9,000,000 out of the total Vote of Credit of £11,000,000 will have been spent or incurred. More than that, I am sure the House will feel that it 1338 will not be within my province to state. As to the matters to be dealt with by the Committee of Ways and Means to-night, I have nothing to state to the House on the subject of the Income Tax, or of the other Revenue in the nature of direct taxation proposed in the Budget. We shall continue to prosecute those parts of the Customs and Inland Revenue Bill without change; but, in addition to the proposals on the subject of the Income Tax, the Death Duties, the stamp on Bonds to bearer, and the taxation of Corporations, the Budget dealt with the taxation of spirits and of beer; and I have now to state to the House that it is our intention to propose, instead of an additional duty of 2s. a gallon on spirits, whether manufactured in the United Kingdom orimported from foreign countries or our Colonies, an additional duty of only 1s. a gallon. The Resolution which I shall move to-night in Committee of Ways and Means will carry out that intention; and I may say that, although the practice has not been uniform as to taking Resolutions in Committee of Ways and Means when a duty is reduced, I have thought that it would be fairer to the trade that, on this occasion, a Resolution should be taken in Committee of Ways and Means in order that the change of duty may be brought into operation at the earliest practicable moment. If, instead of taking such a Resolution in Committee of Ways and Means, we waited until the clause was reached in the Bill, the reduction from 12s. and 12s. 4d. a gallon to 11s. and 11s. 4d., as the ease might be, would take place at an uncertain date. But by voting the reduction in Committee of Ways and Means to-night, we shall be able to bring the reduced duty into operation on Tuesday, the earliest day on which it could practically take effect. The second change proposed in the Budget in connection with indirect taxation was the duty on beer. I proposed in the Budget to add 1s. to the present duty of 6s. 3d. per barrel of 36 gallons. We do not propose to make any change in that increase; but in Committee on the Bill we shall provide that the duty shall only last until the 31st of May of next year, so that in the course of the early part of the first Session of the new Parliament, when the Budget is brought forward, the Chancellor of the Exchequer will have 1339 to propose a Resolution as to beer, precisely as he will as to tea, which is only an annual duty. That could not be done as to the Spirit Duty. ["Oh, oh!"] I will not argue it at this moment; but, practically, if the duty on spirits were left only determined up to a particular day in next year, the trade and the Revenue would be in a complete state of disorganization. But as to beer, inasmuch as practically it is made and consumed, almost from hand to mouth, the same objection does not exist; and by taking the duty up to the end of May next the receipts of the present financial year will not be affected. Then I may say at once that we propose no other change in the Budget. The right hon. Gentleman opposite refers, in his Amendment, to the item of wine. We do not propose to add to the Wine Duty. We propose to leave the Resolutions as to wine adopted in Committee of Ways and Means and the clauses of the Bill founded upon them exactly as they stand. On that subject also I give no reasons whatever now; but I shall be quite prepared, when the right hon. Gentleman moves his Amendment, to state to the House why we do not consider it expedient to add at the present time to the Wine Duties. The financial effect of the changes we now propose will be a loss to the Revenue of £300,000 for the year. In the Budget I proposed to derive from the additional Income Tax £5,400,000, and certain smaller amounts from the increased Death Duties, from the duty on Corporations, and from the additional Stamp Duties on Bonds to bearer. Altogether those additional duties come to something under £6,000,000. We proposed an addition to indirect taxation of £1,650,000—namely, £900,000 from the 2s. duty on spirits, and £750,000 from the additional 1s. on 36 gallons of beer. The £750,000 from beer will, of course, remain unchanged, and from spirits we estimate that under the 1s. duty we shall receive in the present year £600,000 instead of £900,000. Thus the additions to indirect taxation will amount to £1,350,000. For these charges I will give no reasons now; but we shall be quite prepared on the second reading of the Bill to justify our revised proposals.
§ SIR MICHAEL HICKS-BEACHI wish to ask the right hon. Gentleman 1340 whether it is his intention to proceed with the proposal to raise the limit of the 1s. duty on wines above the 30 degrees of alcoholic strength?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)Yes, Sir; I thought I had said I did not propose to alter at all the Resolutions about wine which were adopted in Committee of Ways and Means. We shall propose to carry out precisely the policy recommended to the House in the Budget—that is to say, to leave the Wine Duties alone, except as to taking power to raise the superior limit of the 1s. duty to 30 degrees.
§ LORD RANDOLPH CHURCHILLCan the right hon. Gentleman say how the statement just made will affect the general balance of the National Income and Expenditure?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)I will not go into the whole details of the Budget; but, as I have explained, the general effect will be to take £300,000 from the estimated Revenue.
§ LORD RANDOLPH CHURCHILLBut with regard to the non-expenditure of the£2,000,000 out of the £11,000,000, how will that affect the general Expenditure?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)I beg pardon—I did not catch the exact purport of the noble Lord's first Question. Of course the £2,000,000 which we estimate at present as the saving on the Vote of Credit of £11,000,000 will reduce the amount to be carried forward as the deficit of the year from £2,800,000 to somewhere about £800,000; but to that must be added the £300,000 to which I have just alluded.
§ MR. MITCHELL HENRYI beg to ask whether the people who have paid the 2s. of increased duty on spirits will get it back again; and whether we are to understand that the right hon. Gentleman contemplates that the additional duty on spirits will be permanent, whereas the duty on beer will be subject to revision next year?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)As to the first Question, I do not propose that those who have paid the 2s. additional duty should receive back Is.—["Oh! oh!" and "Why not?"]—for the best of reasons, that those who have paid the 1341 duty have received it back as a general rule from those who have drunk and paid for the spirits. As to the second Question, I thought I had made it very clear that it would be for the Chancellor of the Exchequer next year to consider whether the Beer Duty should be again raised or not. As far as the Spirit Duty is concerned, it will be on the same basis as all other duties.
§ MR. ONSLOWI understand that to-night the Chancellor of the Exchequer will propose this Resolution in Committee of Ways and Means. I hope it will be distinctly understood that the House will not pledge itself to-night to pass this Resolution. It seriously affects the trade to a large extent, and it would be well to give them time to consider it.
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)All I can say is, that I understand the trade will greatly regret if the Resolution reducing the duty is not passed to-night.
§ MR. ONSLOWBut how about the Beer Duty?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)There is no Resolution needed as to beer, because the duty remains as we proposed it. We shall put words into the Bill providing that the increase of duty should only last to May 31. The only Resolution I shall propose to-night is the one with regard to reducing the duty on spirits, and I am in a position to say that nothing would be more unwelcome to the trade than allowing the Resolution to stand over.
§ SIR MICHAEL HICKS-BEACHI understand that the Resolution as to spirits which the right hon. Gentleman proposes to move to-night in Committee of Ways and Means would be practically in substitution for the Resolution which the House has already passed.
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)Yes; from Tuesday next.
§ SIR MICHAEL HICKS-BEACHThen how will the Bill stand? Will there be a clause establishing one rate of duty on spirits for the two months which have just expired, and another rate for the following 10 months of the year?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)Yes; that will be the provision of the Bill. It will establish the rate of duty according to the Budget Resolutions for the month 1342 that is passed, and then from Tuesday the reduced rate of 1s.
§ SIR MICHAEL HICKS-BEACHCan the right hon. Gentleman cite any precedent for such a course?
§ THE CHANCELLOR OF THE EXCHEUER (Mr. CHILDERS)That is a question of argument. If the right hon. Gentleman has any objection, of course he will, in his speech on Monday, enlarge on the subject, and I shall be in a position to answer him.
MR. GORSTAfter what hour tonight will the right hon. Gentleman not take the Resolution in Committee of Ways and Means?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)The Resolution I intend to propose is one of the most formal character. I propose it solely in the interests of the trade, and therefore I trust there will be no objection to taking it at any hour.
MR. GORSTThen, supposing the ordinary Business goes on until the usual hour, the Resolution may be taken at half-past 12 or 1 o'clock?
§ MR. HENEAGEWill not this reduction of the Spirit Duty, in the event of the £2,000,000 being saved out of the Vote of Credit, just prevent the accounts of the year from being balanced?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)That is also a matter of argument, which I would rather not enter upon at present.