§ Even so, for the reasons that I have already explained, it is necessary to look principally to the personal sector for the additional revenue needed. People in employment have in general had more money to spend. Extra tax will have to be levied on that expenditure.
§ I do not propose any increase in the 15 per cent. rate of VAT. As last year, most of the extra revenue needed must come from the Excise duties. Increases would be necessary again this year simply to keep the rates of duty in line with the general movement of prices. Even when that had been done, however, many of the duties would be lower in real terms than they used to be. For example, since April 1975 the beer duty has risen by only about half as much as prices generally. I am proposing to increase the Excise duties to produce, in total, about twice as much additional revenue as would be required to compensate for one year's inflation.