§ With this consideration in mind, I have felt it my duty to examine the innumerable suggestions for new taxes which every Chancellor of the Exchequer receives, in order to see if any fresh source of revenue can be found which would assist the Exchequer in meeting the cost in future years of any present concession without imposing new and unjustifiable burdens on the people of this country.
§ The fact that the exigencies of war finance have compelled successive Chancellors to exhaust practically every method of raising additional revenue has made my task no easy one. As a result., I am greatly attracted by a tax on betting. It appears to me that at a time when expenditure on so many necessaries, as well as the amenities, of life are subject to heavy taxation, there is no reason why betting should escape; but I realise that in the short time that I have held my present office, interrupted as it has been by a General Election and a visit to America, I have had insufficient opportunity of examining in all its aspects this question, which involves more than mere taxation.
§ I have, therefore, decided to seek the assistance of hon. Members in considering this question, and I propose to move for a Select Committee to be set up at once to consider the question of a tax on betting in all its aspects.
§ I do not not wish in any way to pre-judge the Committee's decision, but it is my duty to add a word of warning. On consideration of all the circumstances, I think it right to take an optimistic view of the future, and possibly in the proposals I am going to make for reductions of taxation this year to run certain risks. This may very well mean, however, that some new source of revenue will be necessary if we are to be safe in future years 1736 and to be able, as we all hope, to reduce still further existing taxes. I hope I may find this new source of revenue in the tax which I have described; but if this hope proves illusory it will then be necessary to consider very seriously other alternative.
§ I wish also to make it clear that in my proposals I count on the full support of hon. Members in obtaining still further substantial reductions in Supply expenditure. When Chancellors of the Exchequer speak at Budget time about reductions in taxation, they have always the enthusiastic support of the Committee. I want some of that enthusiasm preserved for other occasions, when hon. Members are apt to forget the close connection between expenditure and the taxpayers' burden. The Government are anxious to make reductions, and the country expects them, and I hope that hon. Members will do their part. Reductions, and substantial reductions, are essential, not merely in special war services which are now dwindling almost automatically, but also in normal services where they are more difficult to obtain. Taxpayers who welcome reduced taxes must not forget that these reductions are only the fruit of reduced expenditure, and that it is only by the continuance of reductions in expenditure, year by year and year after year, that reductions in taxes can be made.