HC Deb 04 May 1914 vol 62 cc84-5

I come to the account for this year. I simply gave the Figures for next year because it is so important that the House of Commons should realise what it is committing itself to by the figures for this year. In this year the deficit I have already revealed amounts to £5,330,000. The new expenditure this year will come to£1, 000,000 for insurance; £586,000 for education, including Scotland and Ireland; public health and other local services, £2,432,000; an extra sum for valuation in order to begin adjusting it for purposes of local taxation, £80,000; the collection of the new taxes, £45,000; and concessions which my right hon. Friend the Postmaster-General made last week to low-paid labour in the Post Office will come this year to £75,000. So I have to add £4,218,000 to the deficiency I have already disclosed. I must have a margin of £252,000, so that the total I have to find this year is £9,800,000. How is the money to be raised? I apologise to the Committee for detaining it so long, because I am sure hon. Members are most anxious to know. I think we must take into account the character of the deficiency and how it has arisen. In the first place, the bulk of it is not an increase in the annual taxation of the United Kingdom. It may be a readjustment of burdens, but a vast majority is transferred from the Imperial expenditure in relief of the local ratepayer. The amount of new service which is in it is comparatively small. It is done in order that those who are not contributing fairly under the present system shall have an opportunity of doing so for the first time. There are two ways in which they can do so. There are those whose property, under the present system of valuation, is not so assessed as to give them a chance of contributing on the basis of its real value. The new system of valuation will furnish them with that opportunity. Then there are those ratepayers who do not contribute in proportion to their means to the local expenditure. If you were to tax them in proportion to their incomes and distribute the proceeds, it might be the best way of adjusting that anomaly.