HC Deb 29 October 1909 vol 12 cc1336-7

(1) For the purpose of Sub-section (3) of Section seventeen of the Finance Act, 1907 (which makes provision with respect to the method of calculating proceeds of duties in the event of any alteration of the rate of duties), the proceeds of the duties on the licences for the sale of intoxicating liquor and on licences for motor cars imposed by this Act shall, so far as respects the sums to be paid into any local taxation account out of the Consolidated Fund in respect thereof, be deemed notwithstanding anything in that Sub-section to be the amount of the proceeds of the duties on those licences during the year ending the thirty-first day of March nineteen hundred and nine.

(2) Notwithstanding the proviso to Subsection (4) of Section six of the Finance Act, 1908, the duties on licences for motor cars in England and Wales shall continue to be duties to which that Section applies, but any sum by which the proceeds of those duties levied in any financial year by the council of any county or county borough exceed the amount of the proceeds of those duties certified by the Local Government Board to have been collected in that county or county borough during the year ending the thirty-first day of March nineteen hundred and nine shall be paid into the Exchequer, and a council shall be entitled to be paid any sum by which the proceeds of those duties levied by them in any year are less than that amount, and the sums so to be paid shall be charged on and paid out of the Consolidated Fund or the growing produce thereof.

(3) Any reference in this Section to duties on licences for motor cars or to the proceeds of those duties shall be construed to be a reference only to the duties on the licences which are affected by this Act.

Mr. WALTER GUINNESS moved to leave out Sub-section (1).

This Sub-section makes provision under Section 17 of the Finance Act of 1907 for allocating the proceeds of the duties on the licences for the sale of intoxicating liquor and on licences for motor cars to the local taxation account. I bring this up because the local authorities have the right to expect that the pledge given by the late Chancellor of the Exchequer (Mr. Asquith) in 1907 will be carried out. In his Budget statement the then Chancellor of the Exchequer, now Prime Minister, challenged the local authorities to hand over the revenue to the Exchequer——

Mr. LLOYD-GEORGE

On a point of Order. I understand the effect of this would be to increase the amount that would go to the local authorities. At the present moment the annual growth of the tax goes to this fund, and the effect of another Amendment which the hon. Member has on the Paper would be that it would pass to the local taxation account, and that undoubtedly would be a charge on the Exchequer.

Mr. WALTER GUINNESS

I do not quite see that the charge is on the Exchequer. I understand that the proceeds of the Motor Duties are to go to another local taxation account, and are to be spent on road development, and are not going to the Exchequer. It is preventing money which is now being enjoyed by the local authorities who raise the tax from being transferred to the local taxation account.

Mr. SPEAKER

The amount would have to be made up, and the Exchequer would have to impose fresh taxation in order to do it.

Mr. WALTER GUINNESS

I understand the Road Development Grant would depend on this tax.

Mr. LLOYD-GEORGE

This Bill has nothing to do with road development. On this Bill we are simply raising the money for another Bill which is devoted to that purpose.

Mr. SPEAKER

I think it is clear that the Amendment might increase the charge on the Exchequer, and it would be out of Order. The next Amendment of the hon. Member is consequential?

Mr. WALTER GUINNESS

Yes.