HC Deb 23 February 1911 vol 21 cc2085-6
Mr. CASSEL

asked the Chancellor of the Exchequer whether his attention has been called to the fall in rateable values in London and elsewhere owing to the new Licence Duties under the Finance (1909–10) Act, 1910; and whether he is prepared to make any compensation to the local authorities affected?

Mr. LLOYD GEORGE

My attention has been called to the possible effect of an increase of the Licence Duties in this direction. The clause in the Revenue Bill, which I explained to the House last Monday, dealing with valuations for Licence Duty, will, of course, tend to mitigate this effect. Having regard to the very liberal concessions now to be made to the local authorities, pending a comprehensive settlement of the question of Exchequer Grants-in-Aid of local taxation, I cannot undertake to make any further transference of burdens from the shoulders of the public in their capacity of ratepayers to the shoulders of the public in their capacity of taxpayers.

Mr. CASSEL

May I ask the Chancellor of the Exchequer whether he will keep an open mind on the question of taking away from the Local Authorities their half share of the Land Taxes?

Mr. LLOYD GEORGE

I should be very glad to revert to my original position of taking a contribution in respect of old age pensions, and handing back to the Local Authorities their half share, because that would be a benefit to the Exchequer of £1,200,000 a year.

Viscount HELMSLEY

Is the right hon. Gentleman aware that his original promise to give half of the Land Taxes to the Local Authorities was made without conditions?

Mr. LLOYD GEORGE

The Noble Lord is perfectly wrong. If he will only just look at the Budget statement, in which I outlined the Land Taxes, he will see I made it perfectly clear then that it was the intention of the Government to levy a contribution on the Local Authorities in respect of pensions.

Viscount HELMSLEY

dissented.

Mr. LLOYD GEORGE

The Noble Lord contradicts me, but I can show him. If he will look at my statement of 29th April, 1909, he will see I made it clear that it was the intention of the Government, as a part of the whole scheme of finance, to levy a contribution in respect of old age pensions on the Local Authorities. It was only subsequently I promised that half of the Land Taxes should go to the Local Authorities. That was on the assumption that the first part of the bargain was carried out. The Government have now under consideration the whole case of the pensions, and they are only holding temporarily half of the Land Taxes, which means that the Local Authorities benefit to the extent of at least a million and a quarter a year.