HC Deb 14 April 1953 vol 514 cc45-6

I now return to the Budgetary prospects for this year. We have, as I said, a total expenditure of £4,259 million, against this I estimate that total revenue on the existing basis of taxation will amount to £4,538 million, an increase of £99 million over the out-turn in 1952–53.

Inland Revenue duties in 1953–54 are expected to yield £2,560 million, an increase of £109 million compared with the out-turn for 1952–53. This increase is chiefly accounted for by the Excess Profits Levy, from which I expect to collect £100 million compared with only £3 million in 1952–53.

The yield of Income Tax is put at £1,905 million, an increase of £169 million over last year. This big increase is primarily due to the changes made in last year's Budget affecting the distribution of the yield as between Profits Tax and Income Tax. Profits Tax, at £215 million, shows a fall of £161 million compared with 1952–53. Taking Income Tax and Profits Tax together, little change is expected. The estimate also allows for a full year's operation of the wage increases granted late in 1952 and for a somewhat higher level of industrial activity in the coming year.

The yield of Surtax in the last two or three years has exceeded expectations mainly because we have been able to check up on arrears. [Interruption.] I am sorry some hon. Members have been affected. This additional squeeze on revenue is now drying up and I expect to receive only £127 million in 1953–54 against £131 million last year.

I estimate the yield of Death Duties to be £160 million and of Stamp Duties to be £52 million compared with £152 million and £50 million respectively in 1952–53.

Revenue from Customs and Excise Duties, on the existing basis of taxation, I put at £1,770 million in 1953–54 compared with £1,763 million last year. The principal items in this total are in order of magnitude or—if I may say so, from my own angle—merit; first, tobacco at £615 million; then beer and alcoholic drinks at £372 million; then Purchase Tax at £305 million; oil at £290 million; Import Duties Act at 70 million; entertainments at £44 million; and betting at £29 million. Against an increase in total tax revenue of £117 million, I expect a reduction in miscellaneous revenue of £18 million—mainly as a result of the tailing off of the disposal of surplus stocks. This produces the net increase of £99 million, which I mentioned earlier, for the year.