HC Deb 08 June 1932 vol 266 cc1957-63

Section eight of the Finance Act, 1931 (which relates to the payment of Income Tax by instalments), is hereby repealed, and Sub-section (2) of Section one hundred and fifty-seven of the Income Tax Act, 1918, shall have effect as originally enacted.—[Mr. Morgan Jones.]

Brought up, and read the First time.


I beg to move, "That the Clause be read a Second time."

4.30 p.m.

I think the substance of this Clause will be apparent to hon. Members in all parts of the House. It will be recollected that in the Finance Act of last year it was made incumbent upon Income Tax payers to pay three-quarters of their tax in the first half-year, and one-quarter in the second half-year. That was a departure from the principle laid down in the Income Tax Act, 1918, whereby, although the Income Tax was in fact due on the 1st January of each year, arrange- ments were made that it should be actually payable in two instalments, one in January and one in July. We think that everyone representing all sorts of Income Tax payers-both the upper and the middle classes, and also the lower middle class, to whom the right hon. Gentleman referred a few minutes ago- will feel that, in these days of very substantial industrial depression and of financial difficulty to individuals, this arrangement of last year might involve a considerable measure of embarrassment to individual Income Tax payers. We feel, therefore, that, in view of the circumstances of the time, circumstances which this year may, perhaps, be even harder than they were last year, the case for a reversion to the 1918 form of procedure is sufficiently overwhelming to invite the cordial assent of the House.


It is undoubtedly a very good thing that the House should realise the difficulties in which direct taxpayers are placed. Reinforced from the source from which we have just heard it, it is all the more welcome. But I will not twit hon. and right hon. Gentlemen opposite with the fact that it was they who imposed the original collection of five quarters of the tax in four quarters of the year. I will merely say that we all realise that that was a strain on the taxpayers. In the future, of course, that strain will not be so heavy, because the collection of the tax will still be four quarters of the tax in four quarters of the year. The real strain came from five quarters of the tax in four quarters of the year far more than the fact that three-quarters is collected in one period and only one-quarter in another. The immediate proposal before us is that

direct taxpayers under Schedule A and also individuals under Schedules B, D and E should only pay three-quarters of their Income Tax this year. That is a consummation devoutly to be wished, but it would cost us £15,000,000 in the present year. And if Schedule A is included, as it is as the Clause is drafted, it would cost £38,000,000 this year. In these circumstances, I am sure hon. and right hon. Gentlemen opposite will realise that, while we greatly appreciate the suggestion which they have put forward, it is not within the bounds of possibility for the Chancellor of the Exchequer to assent to it in the current year.


I am very sorry that the Financial Secretary to the Treasury has so little to say about the matter. It seems to mo a matter of simple justice. The payment of three-quarters of the Income Tax in the first half of the year has been and is a very great hardship indeed to those who have to pay Income Tax. We are simply asking, as a measure of justice, that we should revert to the old system and that Income Tax should be paid in two equal instalments. By reducing the limit from £225 to £150 you have shorn the sheep pretty close to the skin. I am not sure you have not taken some of the skin. We might at least have expected more favourable consideration than has been given to the Clause. We are really asking the Financial Secretary to temper the wind to the lambs after the Chancellor of the Exchequer has shorn them very closely and to allow them to pay in two half yearly instalments.

Question put, "That the Clause be read a Second time."

The House divided: Ayes, 42; Noes, 319.

Division No. 219.] AYES. [4.36 p.m.
Adams, D. M. (Poplar, South) Grundy, Thomas W. McGovern, John
Attlee, Clement Richard Hall, F. (York, W. R., Normanton) Maclean, Neil (Glasgow, Govan)
Batey, Joseph Hall, George H. (Mertnyr Tydvil) Parkinson, John Allen
Bevan, Aneurin (Ebbw Vale) Healy, Cahir Price, Gabriel
Brown, C. W. E. (Notts., Mansfield) Hicks, Ernest George Salter, Dr. Alfred
Buchanan, George Hirst, George Henry Thorne, William James
Cocks, Frederick Seymour Jenkins, Sir William Tinker, John Joseph
Cove, William G. Jones, J. J. (West Ham, Silvertown) Wallhead, Richard C.
Daggar, George Jones, Morgan (Caerphilly) Williams, David (Swansea, East)
Davies, Rhys John (Westhoughton) Kirkwood, David Williams, Edward John (Ogmore)
Duncan, Charles (Derby, Claycross) Lansbury, Rt. Hon. George Williams, Dr. John H. (Lianelly)
Edwards, Charles Leonard, William Williams, Thomas (York, Don Valley)
Greenwood, Rt. Hon. Arthur Logan, David Gilbert
Grenfell, David Rees (Glamorgan) Lunn, William TELLERS FOR THE AYES.—
Griffiths, T. (Monmouth, Pontypool) Macdonald, Gordon (Ince) Mr. John and Mr. Groves.
Acland-Troyte, Lieut.-Colonel Duggan, Hubert John Law, Sir Alfred
Adams, Samuel Vyvyan T. (Leeds, W.) Duncan, James A. L. (Kensington, N.) Law, Richard K. (Hull, S.W.)
Allen, Lt.-Col. J. Sandeman (B'k'nh'd.) Dunglass, Lord Leech, Dr. J. W.
Allen, William (Stoke-on-Trent) Eden, Robert Anthony Lees-Jones, John
Amery, Rt. Hon. Leopold C. M. S. Edmondson, Major A. J. Leighton, Major B. E. P.
Applin, Lieut.-Col. Reginald V. K. Elliot, Major Rt. Hon. Walter E. Lennox-Boyd, A. T.
Apsley, Lord Ellis, Sir R. Geoffrey Levy, Thomas
Astbury, Lieut.-Com. Frederick Wolfe Elliston, Captain George Sampson Liddall, Walter S.
Atholl, Duchess of Elmley, Viscount Lindsay, Noel Ker
Bailey, Eric Alfred George Emmott, Charles E. G. C. Llewellin, Major John J.
Balfour, Capt. Harold (I. of Thanet) Emrys-Evans, P. V. Llewellyn-Jones, Frederick
Balniel, Lord Entwistle, Cyril Fullard Lloyd, Geoffrey
Barclay-Harvey, C. M. Erskine-Bolst, Capt. C. C. (Blackpool) Locker-Lampson, Rt. Hn. G. (Wd. Gr'n)
Barton, Capt. Basil Kelsey Essenhigh, Reginald Clare Lockwood, John C. (Hackney, C.)
Beauchamp, Sir Brograve Campbell Evans, Capt. Ernest (Welsh Univ.) Loder, Captain J. de Vere
Bennett, Capt. Sir Ernest Nathaniel Evans, R. T. (Carmarthen) Lovat-Fraser, James Alexander
Bird, Ernest Roy (Yorks., Skipton) Everard, W. Lindsay Lumley, Captain Lawrence R.
Boothby, Robert John Graham Falle, Sir Bertram G. Lyons, Abraham Montagu
Borodale, Viscount Ferguson, Sir John Mabane, William
Bower, Lieut.-Com. Robert Tatton Fermoy, Lord MacDonald, Malcolm (Bassetlaw)
Bowyer, Capt. Sir George E. W. Fielden, Edward Brockiehurst Macdonald, Capt. P. D. (I. of W.)
Boyce, H. Leslie Foot, Isaac (Cornwall, Bodmin) McEwen, Captain J. H. F.
Braithwaite, Maj. A. N. (Yorks, E. R.) Ford, Sir Patrick J. McKeag, William
Braithwaite J. G. (Hillsborough) Fremantle, Sir Francis McKie, John Hamilton
Briscoe, Capt. Richard George Fuller, Captain A. Q. Maclay, Hon. Joseph Paton
Brockiebank, C. E. R. Ganzoni, Sir John McLean, Major Alan
Brown, Ernest (Leith) Gault, Lieut.-Col. A. Hamilton McLean, Dr. W. H. (Tradeston)
Brown, Brig.-Gen. H. C. (Berks., Newb'y) Gillett, Sir George Masterman Macquisten, Frederick Alexander
Buchan, John Gledhill, Gilbert Magnay, Thomas
Buchan-Hepburn, P. G. T. Glossop, C. W. H. Makins, Brigadier-General Ernest
Burghley, Lord Gluckstein, Louis Halle Mallalieu, Edward Lancelot
Burnett, John George Glyn, Major Ralph G. C. Manningham-Buller, Lt.-Col. Sir M.
Cadogan, Hon. Edward Goff, Sir Park Margesson, Capt. Henry David R.
Campbell, Edward Taswell (Bromley) Goodman, Colonel Albert W. Marsden, Commander Arthur
Campbell, Rear-Admiral G. (Burnley) Gower, Sir Robert Mason, David M. (Edinburgh, E.)
Campbell-Johnston, Malcolm Graham, Fergus (Cumberland, N.) Mayhew, Lieut.-Colonel John
Caporn, Arthur Cecil Grattan-Doyle, Sir Nicholas Merriman, Sir F. Boyd
Castle Stewart, Earl Graves, Marjorie Mills, Sir Frederick (Leyton, E.)
Cautley, Sir Henry S. Greaves-Lord, Sir Walter Mills, Major J. D. (New Forest)
Cayzer, Maj. Sir H. R. (P'rtsm'th, S.) Gretton, Colonel Rt. Hon. John Milne, Charles
Cazalet, Thelma (Islington, E.) Griffith, F. Kingsley (Middlesbro', W.) Milne, Sir John S. Wardlaw-
Chalmers, John Rutherford Grimston, R. V. Mitchell, Sir W. Lane (Streatham)
Chamberlain, Rt. Hon. Sir J. A. (Birm., W) Gritten, W. G. Howard Molson, A. Hugh Eisdale
Choriton, Alan Ernest Leofric Guinness, Thomas L. E. B. Moreing, Adrian C.
Chotzner, Alfred James Gunston, Captain D. W. Morrison, William Shepherd
Christie, James Archibald Guy, J. C. Morrison Moss, Captain H. J.
Churchill, Rt. Hon. Winston Spencer Hamilton, Sir George (Ilford) Muirhead, Major A. J.
Clarke, Frank Hamilton, Sir R. W.(Orkney & Ztl'nd) Munro, Patrick
Clarry, Reginald George Hanbury, Cecil Nail-Cain, Arthur Ronald N.
Clayton, Dr. George C. Hanley, Dennis A. Nation, Brigadier-General J. J. H.
Clydesdale, Marquess of Hartland, George A. Newton, Sir Douglas George C.
Cobb, Sir Cyril Harvey, George (Lambeth, Kenn'gt'n) Nicholson, Godfrey (Morpeth)
Cochrane, Commander Hon. A. D. Harvey, Major S. E. (Devon, Totnes) Nicholson, Rt. Hn. W. G. (Petersf'ld)
Colfox, Major William Philip Haslam, Henry (Lindsay, H'ncastle) North, Captain Edward T.
Collins, Sir Godfrey Haslam, Sir John (Bolton) Nunn, William
Colman, N. C. D. Hellgers, Captain F. F. A. O'Neill, Rt. Hon. Sir Hugh
Colville, John Henderson, Sir Vivian L. (Cheimsf'd) Ormiston, Thomas
Conant, R. J. E. Heneage, Lieut.-Colonel Arthur P. Palmer, Francis Noel
Cook, Thomas A. Hepworth, Joseph Peake, Captain Osbert
Cooke, Douglas Hills, Major Rt. Hon. John Walter Pearson, William G.
Copeland, Ida Hore-Belisha, Leslie Penny, Sir George
Courtauld, Major John Sewell Hornby, Frank Percy, Lord Eustace
Craddock, Sir Reginald Henry Horobin, Ian M. Perkins, Walter R. D.
Cranborne, Viscount Horsbrugh, Florence Petherick, M.
Craven-Ellis, William Hudson, Capt. A. U. M. (Hackney, N.) Peto, Sir Basil E. (Devon, Barnstaple)
Croft, Brigadier-General Sir H. Hume, Sir George Hopwood Peto, Geoffrey K.(W'verh'pt'n, Bliston)
Crooke, J. Smedley Hunter. Capt. M. J. (Brigg) Pickering, Ernest H.
Crookshank, Col. C. de Windt (Bootle) Hurd, Sir Percy Pike, Cecil F.
Crookshank, Capt. H. C. (Gainsb'ro) Hutchison, W. D. (Essex, Romf'd) Potter, John
Crossley, A. C. Jackson, Sir Henry (Wandsworth, C.) Powell, Lieut.-Col. Evelyn G. H.
Cruddas, Lieut.-Colonel Bernard Jackson, J. C. (Heywood & Radcliffe) Procter, Major Henry Adam
Culverwell, Cyril Tom James, Wing.-Com. A. W. H. Pybus, Percy John
Curry, A. C. Janner, Barnett Raikes, Henry V. A. M.
Davies, Maj. Geo. F.(Somerset, Yeovil) Jesson, Major Thomas E. Ramsay, Capt. A. H. M. (Midlothian)
Davison, Sir William Henry Joel, Dudley J. Barnato Ramsay, T. B. W. (Western Isles)
Denman, Hon. R. D. Jones, Lewis (Swansea, West) Ramsbotham, Herwald
Denville, Alfred Ker, J. Campbell Ramsden, E.
Dickie, John P. Kerr, Hamilton W. Ratcliffe, Arthur
Dixey, Arthur C. N. Kimball, Lawrence Rathbone, Eleanor
Donner, P. W. Knatchbull, Captain Hon. M. H. R. Ray, Sir William
Drewe, Cedric Knebworth, Viscount Rea, Walter Russell
Duckworth, George A. V. Knox, Sir Alfred Reed, Arthur C. (Exeter)
Dugdale, Captain Thomas Lionel Lamb, Sir Joseph Quinton Reid, James S. C. (Stirling)
Reid, William Allan (Derby) Somerville, Annesley A. (Windsor) Todd, Capt. A. J. K. (B'wick-on-T.)
Remer, John R. Soper, Richard Todd, A. L. S. (Kingswinford)
Reynolds, Col. Sir James Philip Sotheron-Estcourt, Captain T. E. Touche, Gordon Cosmo
Robinson, John Roland Southby, Commander Archibald R. J. Tryon, Rt. Hon. George Clement
Rosbotham, S. T. Spears, Brigadier-General Edward L. Turton, Robert Hugh
Ross, Ronald D. Spencer, Captain Richard A. Wallace, Captain D. E. (Hornsey)
Ross Taylor, Walter (Woodbridge) Spender-Clay, Rt. Hon. Herbert H. Wallace, John (Dunfermline)
Runge, Norah Cecil Stanley, Lord (Lancaster, Fylde) Ward, Lt.-Col. Sir A. L. (Hull)
Russell, Albert (Kirkcaldy) Stevenson, James Ward, Irene Mary Bewick (Wallsend)
Russell, Alexander West (Tynemouth) Stones, James Warrender, Sir Victor A. G.
Russell, Hamer Field (Sheffield, B'tside) Stourton, Hon. John J. Waterhouse, Captain Charles
Salmon, Major Isidore Strauss, Edward A. Wayland, Sir William A.
Salt, Edward W. Strickland, Captain W. F. Wedderburn, Henry James Scrymgeour-
Samuel, Sir Arthur Michael (F'nham) Sueter, Rear-Admiral Murray F. Wells, Sydney Richard
Sandeman, Sir A. N. Stewart Sugden, Sir Wilfrid Hart Weymouth, Viscount
Sanderson, Sir Frank Barnard Sutcliffe, Harold Whiteside, Borras Noel H.
Savery, Samuel Servington Tate, Mavis Constance Williams, Charles (Devon, Torquay)
Scone, Lord Taylor, Vice-Admiral E. A. (P'dd'gt'n, S.) Williams, Herbert G. (Croydon, S.)
Selley, Harry R. Templeton, William P. Wills, Wilfrid D.
Shakespeare, Geoffrey H. Thomas, James P. L. (Hereford) Windsor-Clive, Lieut.-Colonel George
Shaw, Helen B. (Lanark, Bothwell) Thomas, Major L. S. (King's Norton) Worthington, Dr. John V.
Simmonds, Oliver Edwin Thomson, Sir Frederick Charles Wragg, Herbert
Smiles, Lieut.-Col. Sir Walter D. Thorp, Linton Theodore
Smith-Carington, Neville W. Titchfield, Major the Marquess of TELLERS FOR THE NOES.—
Mr. Womersley and Lord Erskine.

The next new Clause I shall take is that (Duties on coffee and cocoa) standing in the name of the right hon. Gentleman the Member for Spark-brook (Mr. Amery).


May I ask whether the new Clause (Reduction of club duty) in the name of my hon. Friend the Member for East Woolwich (Mr. Hicks) is not to be taken? It is regarded in certain quarters as being fairly important. It was not called during the Committee stage, and it is thought by many hon. Members that the point raised in the proposed new Clause is of sufficient importance at any rate to be ventilated in view of certain other Sections contained in the Finance Bill. May I ask, therefore, whether a case may not be stated why the Clause should be called?


I am afraid that I came to the conclusion that I would not select it.