§ I will now proceed to forecast the revenue of 1926–27 on the existing basis. I put the various items as follow:
|Total Customs and Excise||242,000,000|
|Motor Vehicle Duties||20,100,000|
|Estate, etc., Duties||66,000,000|
|Land Tax, etc.||1,000,000|
§ 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.1703
|Total Inland Revenue||420,000,000|
|Total Tax Revenue||682,100,000|
|Interest on Sundry Loans||17,650,000|
|This includes £4,000,000 from Italy.|
|—this shows a reduction of||£11,000,000—|
|Total Non-tax Revenue||122,600,000|
§ 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.