§ I have one final word on Income Tax. The reduction of the standard rate by 1s. benefits companies as well as individuals; but I hope that the resulting increase in the net profits of companies will be spent on new and up-to-date plant and will not go straight into the shareholders' pockets. We cannot afford that now. In the national interest, capital development 1897 must stand in front of high dividends, particularly in the critical next years when we have to convert and modernise at high speed so large a part of our industrial outfit, much of which is badly out-moded. Also, we must get cracking on exports without hesitation or delay. These provisions are designed to facilitate and accelerate that effort, and I hope full advantage will be taken of them by those who will be entitled to claim the allowances. I am sure that all the boldest and most far-sighted industrial leaders will entirely agree that this is an urgent matter, and that we shall have their full co-operation. I must, however, watch carefully how these first tax reliefs are used by those who receive them, in regard to dividend policy and so on; and I must be guided to some extent in my future consideration of further changes of taxation by the response of industry and of taxpayers generally to this first step down wards from the high levels of war time taxation.
§ Wavell Wakefield (St. Marylebone)Can the Chancellor say anything about E.P.T.?