§ Now I turn to what I regard as the main feature of this year's Budget. The Committee will remember that in my last Budget speech I announced the introduction of a Land Valuation Bill as a prelude to levying an imposition on this basis. The Bill was, in fact, introduced later in the year, but the pressure of public business made it impossible for us to proceed with it. This year we are going to deal with the matter. Since that time I have given considerable thought to the whole subject, and I now propose to include in this year's Finance Bill provisions for the taxation of land values; provisions for the necessary and preliminary step of valuation, together with provisions for the imposition of a tax on land values upon the valuations thus obtained. I think it will be obvious, both on general grounds and also from the experience of the scheme of land value taxation introduced by my right hon. Friend the Member for Carnarvon Boroughs (Mr. Lloyd George), that it would be unwise, if not impracticable, to attempt to value and tax concurrently.
1410§ The valuation is the first and, indeed, the essential step to any scheme under which a contribution to the needs of the community can be levied upon land values. I propose that the valuation should be substantially completed before the tax begins to be levied. Thus, the impost will not become operative during the current financial year, and this will necessitate a somewhat special procedure, about which I shall have something further to say in a moment. Let me first say that the valuation will, I hope, be completed within a period of two years from the passing of the Bill. It will thus be available, subject to periodical revision, as a basis upon which to charge an annual tax for 1933–34 and subsequent years. That tax, for which provision will also be included in the Bill, will be at the rate of ld. in the £ on the capital land value.
§ Now as to procedure, and an explanation of the mystery of the Prime Minister's statement of last Thursday. I am advised that it is not possible to include in this year's Finance Bill provision for the imposition of taxation in a future year without taking certain special measures. I propose, therefore, as soon as the usual discussions on the other Budget Resolutions in Committee have been concluded to bring before the House a separate Resolution. This Resolution will authorise provision to be made in this year's Finance Bill for giving effect to any Resolution which may be passed in Committee of Ways and Means for imposing a tax on land values to come into operation at a date subsequent to the expiration of the current financial year. If that special Resolution is passed by the House, the next step will be to introduce in Committee of Ways and Means the necessary Resolution authorising the imposition of a tax on land values. That Resolution will then be debated in Committee of Ways and Means and on the Report stage will be dealt with as one of the ordinary Budget Resolutions. In introducing the Ways and Means Resolution, I shall, of course, make a full exposition of my actual proposals. In view of the additional opportunities for discussion of this topic which the proposed special procedure entails, I am sure that the Committee will think it unnecessary for me to go into further detail this afternoon.
1411§ The proposals that we shall submit fat dealing with this reform will, I am convinced, be heartily welcomed and supported by the great majority of the House of Commons and the country. The scandal of the private appropriation of land values created by the enterprise and industry of the people and by the expenditure of public money, has been tolerated far too long. In asserting the right of the community to a share in what has been created by the community, we are taking a step which will be approved not only by the Labour and the Liberal parties, which have long advocated this reform, but also by a large number of Conservatives, whose sense of justice is outraged by glaring examples of the exploitation of the public by private land monopolists. The present system stands in the way of social and economic progress, inflicts crushing burdens on industry and hinders municipal development. When we have carried this Measure, as I am sure we shall, and as we are determined to do, we shall look back upon the Budget of this year as a landmark on the road of social and economic progress, and as one further stage towards the emancipation of the people from the tyranny and the injustice of private land monopoly.