VOTE OF CREDIT, 1939. (Hansard, 1 September 1939)

§ The Chancellor of the Exchequer (Sir John Simon)
In the emergency in which we stand it is necessary to supplement the spending authority of the Government as already authorised by the Estimates which the House has passed. The proper course to be followed in such a case is to present to the House for the approval of the House, as I now do, an Estimate for a very large sum in order that the grant may be at once made as a Vote of Credit in Committee of Supply and reported to the House. On Report of the Ways and Means Resolution, a Consolidated Fund Bill will be immediately brought in to authorise the issue of this sum from the Consolidated Fund. I, therefore, move the Resolution. Hon. Members will appreciate that a Vote of Credit is necessarily in wide and general terms. Apart from the impossibility of foreseeing all the services which may be provided out of it, it may be undesirable, as a matter of public policy, to give too much information as to plans in an emergency. The scope of the Vote is intended to cover all the services which may be directly involved in prosecuting any war in which His Majesty may be engaged. The figure of £500,000,000 has been arrived at after consideration of various kinds of additional outlay likely to be involved in the near future, and I do not think the House will, in the circumstances, desire any further information.

§ Mr. Pethick-Lawrence
This tremendous sum which the Chancellor of the Exchequer is asking us to approve is not out of proportion to the tremendous responsibilities which we are being called upon to face. But I want to ask one question, to which not only this House but, I am quite sure, the country as a whole will wish to have an answer. The Chancellor could give the answer now or, 141 if he prefers, when he moves the Second Reading of the Bill which arises out of his present proposals. The question is, is he, within the course of a very few days, going to introduce a new Budget? The Chancellor of the Exchequer will not forget that in 1914, very shortly after the War had been declared, a new Budget, imposing additional taxation, was introduced and carried into law. I desire to ask what his intentions are with regard to that matter, and, if it is his intention to do so, when we may expect to have that statement which is customary in the case of a Budget?

§ Sir J. Simon
I think the simplest thing would be for me to answer the question at once. Naturally, the arrangements we are making now are made on the emerging of a very sudden and serious situation. It certainly does occur to me, speaking without opportunity of considering it in more detail, that further provision will have to be made of the sort that the right hon. Gentleman has mentioned. I cannot, of course, say more now.