§ 4.0 P.M.
§ I proceed, accordingly, to deal with the figures which hon. Members have 1021 before them in the White Paper. In order to make comparisons clear, I have in the Paper allocated to Supply Services the£97,000,000 which, though not included in last year's Estimates as originally presented to Parliament, was known at the time of the Budget to be likely to be needed for Supply, and was provided for in the Budget calculations. The main circumstances which made calculation at that time impossible were the unknown length and cost of the coal stoppage, which had then begun, and the settlements which were then in negotiation between the railway companies and the Government arising out of the War agreements. The Committee will remember that, while the Estimates showed a balance of revenue over expenditure of£177,000,000, it was indicated in the Budget speech that£97,000,000 would probably be required for expenditure foreseen but not then capable of exact calculation, and that the remaining£80,000,000 would be available for the reduction of Debt. I am very anxious to make this point clear, because one sees persistently reiterated in certain quarters the statement that we budgeted for a surplus of£177,000,000 last year. I really fail to understand why the state of the country's finances should be represented as being worse than it is simply because the calculation was made by a Minister in a Government with which some people happen to be in disagreement. With this adjustment, the original Budget figure for Supply Services in 1921–22 becomes£668,000,000 plus£97,000,000, or£765,000,000, which I shall hereafter call the Budget Estimate for Supply Services.
§ The total estimated expenditure anticipated in the year, including Consolidated Fund Services, was£1,136,000,000. The Committee will see, accordingly, that the Budget anticipated a revenue of£1,216,000,000, an expenditure of£1,136,000,000, and a surplus for redemption of debt of£80,000,000. The actual results are a revenue of£1,124,880,000, or£91,000,000 less than estimated, an expenditure of£1,079,187,000, or£57,000,000 less than estimated, and a surplus for debt reduction of£45,693,000. Having regard to the unparalleled circumstances of the year, I think that to be able to devote so large a sum as that towards 1022 the reduction of debt is a record which is very creditable to the country.
§ I take now the details of the revenue and expenditure. Taking the Revenue first, the first item to which I wish to refer is Customs and Excise. The Budget Estimates for Customs and Excise Revenue was£323,000,000, namely,£126,800,000 for Customs and£196,200,000 for Excise. Some hon. Members considered this far too high a figure in view of the coal stoppage which had begun and the state of depression in which the country was, but, as the Committee now knows, the Estimate was exceeded by a substantial sum. The amount paid into the Exchequer was£130,052,000 in respect of Customs and£194,291,000 in respect of Excise, making£324,343,000 in all, or£1,343,000 more than the Budget Estimate. Although on the general total there was a surplus, there were, of course, variations in detail. For example, beer realised almost£2,000,000 more than the Budget Estimate. Tobacco, sugar, and tea also realised more than the Estimate. Spirits were under the Estimate by£7,500,000, and Entertainments Duty by about£1,500,000. There was an increase of£2,000,000 in the yield of the Motor Tax, but it is balanced by a corresponding issue to the Road Fund.
§ I come now to Inland Revenue. The Inland Revenue Duties as a whole fell below the original Budget Estimate by£110,726,000. This almost entirely arises on the Excess Profits Duty, which discloses a shortage of£89,548,000. The Corporation Profits Tax failed by£12,484,000 to realise the Estimate, and Income Tax by£11,613,000. In each case, the deficiency must be attributed to trade depression.
§ I hope the Committee will allow me an observation on some of these results. The unpaid arrears of Excess Profits Duty amounted at the beginning of last year to£287,000,000 and£131,000,000 net was assessed during the year, making the large total of£418,000,000. But the gross collection—this is the critical amount— amounted only to£122,000,000, of which£92,000,000 was exhausted by repayments. The unpaid arrears outstanding at the end of last year amounted to£296,000,000. Many of these arrears are subject to adjustment on appeal or otherwise, but the payments expected ultimately to be received by the Revenue are considerable. The position of the Excess Profits Duty is very exceptional, and, before I sit 1023 down, I hope to make a certain proposal with regard to it. Taking all the circumstances into account, I think that we shall agree that the Income Tax yield was not unsatisfactory. Indeed, it is remarkable in a year like that through which we have come that we should have collected nearly£399,000,000 in Income Tax and Super-tax. That, it seems to me, to be a tribute not only to the financial resources of the country, but also to the patriotism of the people. Supertax produced£1,730,000 more than was expected, and a surplus of£4,191,000 was realised on the Death Duties. Stamps fell short of the estimate by£1,362,000.
§ The only other head of revenue is that of Miscellaneous Receipts, upon which such gloomy prognostications were pronounced in the Debate to which I have referred. The main items in the total of£197,000,000 realised from Miscellaneous Receipts are these: Excess interest on currency note account amounts to£17,500,000, Disposal Commission receipts to£42,750,000, payments for troops of occupation in Germany,£44,500,000, Ministry of Shipping receipts, nearly£29,000,000, Ministry of Food receipts, including Sugar and Wheat Commissions,£19,000,000. In total, the revenue was less than we anticipated by£91,000,000 odd, of which£89,000,000 was accounted for by the failure of the Excess Profits Duty.
§ Happily, expenditure, as I have indicated, also proved less than the estimate. The Consolidated Fund Services show a saving on the Estimate of just over£11,000,000, which is accounted for by the more favourable rates at which we have been able to place Treasury Bills. That rate is due to many causes, but, among others, undoubtedly to the system of tender which we re-introduced in the early part of the last financial year and which has had most successful results.
§ The Supply Services show a saving, as compared with the adjusted Budget Estimate of£765,000,000, of£46,000,000, but, to avoid confusion, it is necessary that I should make a comparison also with the final estimates. Allowing for the reduction in the Army Estimates by transfer to Middle East Estimates, the Supplementary Estimates and Excess Votes presented during the year, in fact, amounted to£121,000,000, or£24,000,000 more than we anticipated at Budget time. On this basis, the net voted Supply was 1024 £789,000,000, and the saving,£69,000,000. Of this total,£4,000,000 was on the Navy, nearly£5,000,000 on the Air Force, and£14,000,000 on pensions, mainly due to an over-estimate of claims. The rest, some£46,000,000, is scattered over a large number of Civil Service Votes and is in the main due to the pressure which has been exercised by the Government in the course of the year with a view to curtailing all avoidable expenditure. It is due to that saving that we are able to put£45,000,000 at the end of the year to the reduction of debt. I do not think I am putting the matter too strongly when I say that this is a remarkable saving in the course of the year.