§ Section sixteen of the Finance Act, 1920 (which provides allowance in respect of earned income), shall have effect as if for the word "one-tenth" there were substituted the word "one-fifth."—[Mr. Lunn.]
§ Brought up, and read the First time.
1952§ Mr. LUNNI beg to move, "That the Clause be read a Second time."
Parliament has wisely decided to differentiate between earned income and unearned income. I have not read the Debates that took place when this scheme was carried out, but I often wonder what justification was offered for any able-bodied man or woman, who neither toiled nor spun, receiving unearned income at all. I could not offer any justification for people who are able to work receiving an income for which they do not work. At the same time Parliament has made some differentiation in the matter. For instance, a married man in receipt of an income of £325 would be liable to taxation on £100, having been excused £225 for himself and his wife. If his income was earned he would be liable to taxation on only £90. This new Clause would give further relaxation to the people who work for their livelihood. I need not say that people in receipt of small incomes have some difficulty in getting along at the present moment. I urge upon the learned Solicitor-General that he should give consideration to this new Clause in the interests of people who are earning their livelihood, seeing that consideration has already been given to those who do not work for their livelihood.
§ Sir L. SCOTTI regret that it is quite impossible for the Government to accede to the request implied in this Amendment. It would cost £10,500,000 sterling in a full year, and, having regard to the position of the Exchequer, that is a conclusive objection to it. The Committee will remember, no doubt, that the scale of differentiation was most carefully considered by the Royal Commission, who recommended that there should be a uniform allowance of one-tenth, and that was carried out in the Finance Act, 1920. The Royal Commission found that the previous system of differentiation worked most unevenly in different cases, and it was in consequence of their recommendations that the present system of taking, so to speak, a lump off the first part of the income was adopted in place of the old system. It is impossible for the Government to consider at all any partial revision of the carefully considered scheme recommended by the Royal Commission and adopted by this House in 1920. It may be that in years to come, when the 1953 expenditure of the country has been successfully reduced to a very much lower scale and revenue is coming in well, it will be thought desirable to have a general reconsideration; but a partial reconsideration of the general system of differentiation adopted is impracticable.
§ Mr. ADAMSONI am disappointed with the reply of the Government. If we are asking for a partial review of the recommendations of the Royal Commission, we are asking it on behalf of a section of the community which really requires it. We have spent something like four or five hours considering the interests of a section of the community which is not nearly so hard pressed as that for which we appeal. The learned Solicitor-General has told us that there is a differentiation. That we frankly admit. But we point out just as strongly that that differentiation between earned Income and the income of those who draw their money from investments is not fair. More encouragement should be given to those Members of the community who have to live by what they can earn by their efforts, those who are really giving value to the State for the money they earn as against those who render no service to the State. The Amendment would do only bare justice.
We understood that the cost to the Treasury would not be anything like the figure that has been mentioned. Whether it reaches that cost or the one that we would like to believe it reaches, that does not touch the point of justice. I hope that even yet the Solicitor-General, on behalf of the Chancellor of the Exchequer, may offer us some of the words
§ of hope that he has given to other sections of the House during the evening—offered in such a generous way that only a. few moments ago we had one hon. Member getting up and giving the Chancellor of the Exchequer and the Solicitor-General special thanks. Here is a section of the community which is more deserving of your generosity than the section with which we have been dealing for the last four or five hours. We are not pleading for your generosity. What we are pleading for is a measure of justice, and it is curious that any time we get up to move an Amendment or propose a new Clause, pleading for a measure of justice for any section of the community, we are suet by the argument either that the Treasury cannot afford it or that the Royal Commission on Income Tax has recommended something else. We are growing a little tired of the excuses put forward by the Chancellor and the Solicitor-General. We believe these excuses would not be so frequent if we had behind us the Federation of British Industries. Unfortunately, we have not an influence of that kind behind us. We represent those who toil and spin. The Federation of British Industries represent those who neither toil nor spin. Consequently, they get these messages of hope and these promises of future reconsideration which we do not get. I hope before the Debate closes we shall have the Solicitor-General giving us one of those messages of hope and promising that he will reconsider this before the Report stage is reached.
§ Question put, "That the Clause be read a Second time."
§ The Committee divided: Ayes, 61: Noes, 254.
1955| Division No. 178.] | AYES. | [9.19 p.m. |
| Adamson, Rt. Hon. William | Grundy, T. W. | Polson, Sir Thomas A. |
| Addison, Rt. Hon. Dr. Christopher | Guest, J. (York, W.R., Hemsworth) | Raffan, Peter Wilson |
| Banton, George | Hartshorn, Vernon | Richardson, R. (Houghton-le-Spring) |
| Barker, G. (Monmouth, Abertillery) | Hayday, Arthur | Rose, Frank H. |
| Barnes, Major H. (Newcastle, E.) | Hayward, Evan | Sexton, James |
| Benn, Captain Wedgwood (Leith) | Hirst, G. H. | Short, Alfred (Wednesbury) |
| Bowerman, Rt. Hon. Charles W. | Hogge, James Myles | Sitch, Charles H. |
| Bramsdon, Sir Thomas | Holmes, J. Stanley | Swan, J. E. |
| Briant, Frank | Irving, Dan | Thomas, Brig.-Gen. Sir O. (Anglesey) |
| Bromfield, William | John, William (Rhondda, West) | Thomson, T. (Middlesbrough, West) |
| Cairns, John | Jones, Morgan (Caerphilly) | Walsh, Stephen (Lancaster, Ince) |
| Carter, W. (Nottingham, Mansfield) | Kenyon, Barnet | Watts-Morgan, Lieut.-Col. D. |
| Cecil, Rt. Hon. Lord R. (Hitchin) | Lawson, John James | White, Charles F. (Derby, Western) |
| Collins, Sir Godfrey (Greenock) | Lyle-Samuel, Alexander | Wignall, James |
| Davies, A. (Lancaster, Clitheroe) | Maclean, Rt. Hn. Sir D. (Midlothian) | Williams, Aneurin (Durham, Consett) |
| Davies, Alfred Thomas (Lincoln) | Murray, Dr. D. (Inverness & Ross) | Williams, Col. P. (Middlesbrough, E.) |
| Edwards, C. (Monmouth, Bedwellty) | Myers, Thomas | Wintringham Margaret |
| Finney, Samuel | Naylor, Thomas Ellis | Wood, Major M. M. (Aberdeen, C.) |
| Foot, Isaac | Newbould, Alfred Ernest | |
| Fraser, Major Sir Keith | O'Grady, Captain James | TELLERS FOR THE AYES.— |
| Galbraith, Samuel | Parkinson, John Allen (Wigan) | Mr. Lunn and Mr. Frederick Hall. |
| Gillis, William | ||
| NOES. | ||
| Adkins, Sir William Ryland Dent | Greene, Lt.-Col. Sir W. (Hack'y, N.) | Norman, Major Rt. Hon. Sir Henry |
| Ainsworth, Captain Charles | Greenwood, Rt. Hon. Sir Hamar | Norris, Colonel Sir Henry G. |
| Armitage, Robert | Greer, Sir Harry | Norton-Griffiths, Lieut.-Col. Sir John |
| Armstrong, Henry Bruce | Gregory, Holman | Parry, Lieut.-Colonel Thomas Henry |
| Ashley, Colonel Wilfrid W. | Greig, Colonel Sir James William | Pearce, Sir William |
| Astbury, Lieut.-Com. Frederick W. | Gritten, W. G. Howard | Pease, Rt. Hon. Herbert Pike |
| Astor, Viscountess | Guest, Capt. Rt. Hon. Frederick E. | Perkins, Walter Frank |
| Atkey, A. R. | Hall, Lieut.-Col. Sir F. (Dulwich) | Perring, William George |
| Baird, Sir John Lawrence | Hamilton, Sir George C. | Philipps, Sir Owen C. (Chester, City) |
| Baldwin, Rt. Hon. Stanley | Hannon, Patrick Joseph Henry | Pickering, Colonel Emil W. |
| Banbury, Rt. Hon. Sir Frederick G. | Harmsworth, C. B. (Bedford, Luton) | Pilditch, Sir Philip |
| Barker, Major Robert H. | Harmsworth, Hon. E. C. (Kent) | Pinkham, Lieut.-Colonel Charles |
| Barlow, Sir Montague | Haslam, Lewis | Pollock, Rt. Hon. Sir Ernest Murray |
| Barnett, Major Richard W. | Henderson, Lt.-Col. V. L. (Tradeston) | Pownall, Lieut.-Colonel Assheton |
| Barnston, Major Harry | Hennessy, Major J. R. G. | Pratt, John William |
| Barrand, A. R. | Herbert Dennis (Hertford, Watford) | Preston, Sir W. R. |
| Barrie, Sir Charles Coupar (Banff) | Hills, Major John Waller | Purchase, H. G. |
| Bartley-Denniss, Sir Edmund Robert | Hinds, John | Rae, Sir Henry N. |
| Bell, Lieut.-Col. W. C. H. (Devizes) | Holbrook, Sir Arthur Richard | Remer, J. R. |
| Bellairs, Commander Carlyon W. | Hood, Sir Joseph | Remnant, Sir James |
| Benn, Sir A. S. (Plymouth, Drake) | Hope, Sir H.(Stirling & Cl'ckm'nn,w.) | Renwick, Sir George |
| Betterton, Henry B. | Hope, Lt.-Col. Sir J. A. (Midlothlan) | Richardson, Sir Alex. (Gravesend) |
| Bigland, Alfred | Hopkins, John W. W. | Richardson, Lt.-Col. Sir P. (Chertsey) |
| Bird, Sir R. B. (Wolverhampton, W.) | Hopkinson, A. (Lancaster, Moseley) | Roberts, Rt. Hon. G. H. (Norwich) |
| Blair, Sir Reginald | Horne, Edgar (Surrey, Guildford) | Roberts, Samuel (Hereford, Hereford) |
| Blake, Sir Francis Douglas | Horne, Sir R. S. (Glasgow, Hillhead) | Roberts, Sir S. (Sheffield, Ecclesall) |
| Blane, T. A. | Hume-Williams, Sir W. Ellis | Robinson, S. (Brecon and Radnor) |
| Boscawen, Rt. Hon. Sir A. Griffith- | Hunter-Weston, Lt.-Gen. Sir Aylmer | Robinson, Sir T. (Lancs, Stretford) |
| Bowyer, Captain G. W. E. | Hurd, Percy A. | Samuel, A. M. (Surrey, Farnham) |
| Brassey, H. L. C. | Hurst, Lieut.-Colonel Gerald B. | Samuel, Samuel (W'dsworth, Putney) |
| Breese, Major Charles E. | Inskip, Thomas Walker H. | Sanders, Colonel Sir Robert Arthur |
| Bridgeman, Rt. Hon. William Clive | Jackson, Lieut.-Colonel Hon, F. S. | Sassoon, Sir Philip Albert Gustave D. |
| Briggs, Harold | Jameson, John Gordon | Scott, A. M. (Glasgow, Bridgeton) |
| Broad, Thomas Tucker | Jephcott, A. R. | Scott, Sir Leslie (Liverp'l, Exchange) |
| Brotherton, Colonel Sir Edward A. | Jodrell, Neville Paul | Seddon, J. A. |
| Brown, Brig.-Gen. Clifton (Newbury) | Johnson, Sir Stanley | Shaw, Hon. Alex. (Klimarnock) |
| Bruton, Sir James | Johnstone, Joseph | Shaw, William T. (Forfar) |
| Buckley, Lieut.-Colonel A. | Jones, Sir Edgar R. (Merthyr Tydvll) | Shortt, Rt. Hon. E. (N'castle-on-T.) |
| Butcher, Sir John George | Jones, G. W. H. (Stoke Newington) | Simm, M. T. |
| Campion, Lieut.-Colonel W. R. | Jones, Henry Haydn (Merioneth) | Sprot, Colonel Sir Alexander |
| Carter, R. A. D. (Man., Withington) | Jones, J. T. (Carmarthen, Llanelly) | Stanley, Major Hon. G. (Preston) |
| Casey, T. W. | Joynson-Hicks, Sir William | Stanton, Charles Butt |
| Cautley, Henry Strother | Kellaway, Rt. Hon. Fredk, George | Steel, Major S. Strang |
| Chamberlain, N. (Birm., Ladywood) | Kelley, Major Fred (Rotherham) | Stephenson, Lieut.-Colonel H. K. |
| Child, Brigadier-General Sir Hill | Kidd, James | Stevens, Marshall |
| Churchman, Sir Arthur | King, Captain Henry Douglas | Stewart, Gershom |
| Clough, Sir Robert | Lambert, Rt. Hon. George | Strauss, Edward Anthony |
| Cockerill, Brigadier-General G. K. | Larmor, Sir Joseph | Sturrock, J. Leng |
| Colfox, Major Wm. Phillips | Law, Alfred J. (Rochdale) | Sugden, W. H. |
| Colvin, Brig.-General Richard Beale | Lewis, Rt. Hon. J. H. (Univ., Wales) | Sutherland, Sir William |
| Cope, Major William | Lewis, T. A. (Glam., Pontypridd) | Sykes, Sir Charles (Huddersfield) |
| Cory, Sir C. J. (Cornwall, St. Ives) | Lloyd, George Butler | Taylor, J. |
| Cowan, D. M. (Scottish Universities) | Locker-Lampoon, G. (Wood Green) | Thomas, Sir Robert J. (Wrexham) |
| Dalzfel, Sir D. (Lambeth, Brixton) | Locker-Lampson, Com. O. (H'tingd'n) | Thomson, F. C. (Aberdeen, South) |
| Davidson, Major-General Sir J. H. | Lorden, John William | Thomson, Sir W. Mitchell- (Maryhill) |
| Davies, David (Montgomery) | Lort-Williams, J. | Townley, Maximillan G. |
| Davies, Sir David Sanders (Denbigh) | McCurdy, Rt. Hon. Charles A. | Tryon, Major George Clement |
| Davies, Thomas (Cirencester) | Mackinder, Sir H. J. (Camlachie) | Vickers, Douglas |
| Davies, Sir William H. (Bristol, S.) | McLaren, Robert (Lanark, Northern) | Wallace, J. |
| Davison, Sir W. H. (Kensington, S.) | M'Lean, Lieut.-Col. Charles W. W. | Walters, Rt. Hon. Sir John Tudor |
| Dawson, Sir Philip | Macleod, J. MackIntosh | Walton, J. (York, W. R., Don Valley) |
| Dewhurst, Lieut.-Commander Harry | McMicking, Major Gilbert | Ward, Col. J. (Stoke-upon-Trent) |
| Dockrell, Sir Maurice | McNeill, Ronald (Kent, Canterbury) | Ward, Col. L. (Kingston-upon-Hull) |
| Doyle, N. Grattan | Macpherson, Rt. Hon. James I. | Ward, William Dudley (Southampton) |
| Du Pre, Colonel William Baring | Macquisten, F. A. | Waring, Major Walter |
| Edgar, Clifford B. | Mallalieu, Frederick William | Warner, Sir T. Courtenay T. |
| Edge, Captain Sir William | Malone, Major P. B. (Tottenham, S.) | Watson, Captain John Bertrand |
| Edwards, Major J. (Aberavon) | Manville, Edward | Weston, Colonel John Wakefield |
| Erskine, James Malcolm Monteith | Marks, Sir George Croydon | Whaler, Col. Granville C. H. |
| Evans, Ernest | Martin, A. E. | White, Col. G. D. (Southport) |
| Falcon, Captain Michael | Middlebrook, Sir William | Willey, Lieut.-Colonel F. V. |
| Falle, Major Sir Bertram Godfray | Mitchell, Sir William Lane | Williams, C. (Tavistock) |
| Fell, Sir Arthur | Molson, Major John Elsdale | Willoughby, Lieut.-Col. Hon. Claud |
| Fisher, Rt. Hon. Herbert A. L. | Mond, Rt. Hon. Sir Alfred Moritz | Winterton, Earl |
| Flannery, Sir James Fortescue | Morden, Col. W. Grant | Wise, Frederick |
| Forestier-Walker, L. | Moreing, Captain Algernon H. | Wood, Hon. Edward F. L. (Ripon) |
| Forrest, Walter | Morrison-Bell, Major A. C. | Wood, Sir H. K. (Woolwich, West) |
| Fremantle, Lieut.-Colonel Francis E. | Munro, Rt. Hon. Robert | Wood, Major Sir S. Hill- (High Peak) |
| Ganzoni, Sir John | Murchison, C. K. | Worsfold, T. Cato |
| Gee, Captain Robert | Murray, John (Leeds, West) | Worthington-Evans, Rt. Hon. Sir L. |
| George, Rt. Hon. David Lloyd | Neal, Arthur | Yeo, Sir Alfred William |
| Gibbs, Colonel George Abraham | Newman, Sir R. H. S. D. L. (Exeter) | Younger, Sir George |
| Gilmour, Lieut.-Colonel Sir John | Newson, Sir Percy Wilson | |
| Goff, Sir R. Park | Newton, Sir D. G. C. (Cambridge) | TELLERS FOR THE NOES.— |
| Gould, James C. | Nicholson, Brig.-Gen. J. (Westminster) | Colonel Leslie Wilson and Mr. |
| Green, Joseph F. (Leicester, W.) | Nield, Sir Herbert | Parker. |