HC Deb 26 April 1926 vol 194 cc1702-3

I will now proceed to forecast the revenue of 1926–27 on the existing basis. I put the various items as follow:

Customs 107,700,000
Excise 134,300,000
Total Customs and Excise 242,000,000
Motor Vehicle Duties 20,100,000
Estate, etc., Duties 66,000,000
Stamps 25,000,000
Land Tax, etc. 1,000,000
Income Tax 255,000,000
Super-tax 64,500,000

There is a decline in Super-tax because of the remission made last year, and a converse improvement in Estate Duty because the increased duties of last year have begun to take full effect.

Excess Profits Duty 2,000,000
Corporation Profits Tax 6,500,000

This shows a very heavy drop as compared with the yield of last year. This tax is coming to an end very speedily now.

Total Inland Revenue 420,000,000
Total Tax Revenue 682,100,000
Post Office 59,400,000
Crown Lands 950,000
Interest on Sundry Loans 17,650,000
This includes £4,000,000 from Italy.
Ordinary Receipts 18,600,000
Special Receipts 26,000,000
—this shows a reduction of £11,000,000—
Total Non-tax Revenue 122,600,000
Total Revenue 804,700,000

We have thus a revenue of £804,700,000, and an estimated expenditure of £812,600,000. The prospective deficit is £7,900,000 therefore.

Let us review the situation. Last year's finance realised a deficit, however explainable, of £14,000,000. Next year's figures, if nothing is done, show a prospective deficit of £7,900,000. The prospects for the year after threaten us with decreases in revenue that will balance, or more than balance, its normal growth. They threaten us also with increases in expenditure which will probably, at the very best, go far to offset the fruits of further economies. Evidently, if a sound basis of our finance is to be maintained, we must act, and act in good time. I have, therefore, felt it my duty to seek additional resources, both temporary and permanent, in every direction open to me, and I come first of all to the sphere of Inland Revenue.