§ Every one of our great direct taxes has demands upon my attention, and it has been a matter of difficulty to decide between the competing claims. But in the end I have come to the conclusion that such sum as I can afford to lose must in the main he devoted to reduction of the Income Tax. Continuing, of necessity more modestly, the good work of my predecessor, I propose to reduce the Income Tax to 4s. 6d. in the pound. This course spreads the relief which I can afford over the widest possible area, and at the same time it will, in my belief, give at least as great a stimulus to trade as any other proposal which I could make. The reduction will cost me £26,000,000 in a full year. This year, although of course the reduction will take effect as from the 6th of this present month, the cost will be £19,000,000.