HC Deb 19 April 1955 vol 540 cc45-6

I turn now to look forward to the year 1955–56 and propose first to look at the Budget accounts, starting above the line.

On the basis of existing taxation I estimate total revenue to be £4,844 million, an increase of £106 million over the actual yield in 1954–55. I know hon. Members' interest, but I hope they will excuse me if I go faster than dictation speed.

Inland Revenue duties in 1955–56 are expected to provide £2,610 million, an increase of £69 million on the out-turn for 1954–55. From Income Tax I expect to receive £2,009 million, or £116 million more than last year. This increase will come partly from the higher profits of the past year, and partly from the effect over a full year of recent increases in wages and salaries. The yield of Profits Tax is expected to rise by £7 million to £180 million, but the yield of the Excess Profits Levy will naturally fall, to about £25 million. I look for a further small increase in Surtax, which will bring the yield up to £136 million. Death duties at £185 million, stamp duties at £74 million and miscellaneous Inland Revenue duties at £1 million, are expected to bring in approximately the same amounts as last year.

Now for Customs and Excise; I estimate the revenue from Customs and Excise duties at £1,930 million in 1955–56, compared with £1,872 million last year. The principal items in this total which I forecast are: tobacco, £660 million; beer and other alcoholic drinks, £388½ million, Purchase Tax, £370 million; oil, £320 million; duties under the Import Duties Act, 1932, £70 million; Entertainments Duty, £41 million; and betting, £28½ million.

After taking motor duties of £80 million into account, I estimate total tax revenue in 1955–56 at £4,620 million, an increase of £128 million over the yield in 1954–55. From non-tax revenue I expect £224 million, or £22 million less than the actual yield in 1954–55.