HC Deb 19 April 1920 vol 128 c86

I have now cleared the ground. These, as I have said, are minor alterations important only as they affect particular interests, but bringing no additional revenue to the Exchequer. I come now to serious business. First, I address myself to spirits. At the time of my last Budget the delivery of spirits for home consumption was still subject to restrictions. In November all restrictions upon supply were removed. The trade is now free to clear to the full extent of the demand Owing to a variety of causes the cost of the manufacture of spirits, in which I include the cost of replacement of stock, has risen within the last year. Increases have taken place in wages, in cost of materials, in transport, and in other matters. Nevertheless, the removal of all restrictions on supply, coupled with the permitted scale of prices, leaves a margin of profit to the trade which is still more than reasonable, and I propose now to appropriate a further share of that profit to the Exchequer. But the amount which I could obtain from this source is insufficient under present circumstances. On this occasion I must ask the consumer, as well as the trade, to contribute. With their combined help, which I am sure they will readily give, I propose to increase the duty by 22s. 6d. to 72s. 6d. a proof gallon Prices will be readjusted accordingly, the retail price being raised by 2½d. per gill in public bars, and by 2s. per bottle. I estimate that the increased duty will yield in the current year £23,500,000 of revenue, and in a full year £24,500,000.

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