DEFENCE TAX IN BRITAIN

Press, Volume LXXIII, Issue 22108, 2 June 1937, Page 9

DEFENCE TAX IN BRITAIN

UNPOPULAR WITH ALL PARTIES OPPOSITION OF GOVERNMENT j MEMBERS (Received June 2, 2 a.m.) LONDON, June 1. In his first speech as Chancellor of the Exchequer in the House of Commons, moving "the second reading of the Finance Bill, Sir John Simon said: "There are no grounds for abandoning the well-tried methods which have governed British policy in economic matters in recent years. Like my predecessor, I attach the very greatest importance to international co-operation, both in the monetary and economic nelds, and no efforts on our part will be lacking to secure and extend such co-operation." ' The Chancellor defended the national defence contribution. He said the concessions in a full year would cost about £5,000,000. The tax vield would be about £ 15,000.000. , _ D- Hugh Dalton (Labour, Durham) moved the rejection of the Sir John Wardlaw-Milne (Kidderminster) and several other Conservatives criticised the tax. The Conservative motion condemning the national defence contribution is now supported by 20 members. It foreshadows a vigorous attack, in the committee stage. Last night's debate has revealed how unpopular the tax is with all parties. » Sir Francis Acland's criticisms were listened to with particular respect as he is a practical business man who at first favoured the tax and then was converted to opposition by its complexities and inequities. . _^ Mr Clement T)avies (LiberalNationalist) summed up the general feeling of Government supporters as follows: "The Prime Minister is presuming on his position and on bur loyalty, is being strained to breaking-point." "The Times" says: "Sir John Simon dashed himself vainly against the iceberg of general dissent." The Parliamentary correspondent of the "Manchester Guardian" pays a tribute to Dr. Dalton's moderate but trenchant opposition, and singles out such phrases as: "The tax Is an administrative minstrosity—a financial fantasy. . . The Prime Minister should take* it back and try again." An earlier message said:— It is probable that during the debate to-morrow the Chancellor of the Exchequer (Sir John Simon) will be urged to set up a departmental committee to work out a simpler scheme to be introduced as a separate measure at a later stage. The heads of 18 of the largest industrial concerns in Britain, including the Unilever Company, the Dunlop Rubber Company, and the Imperial Tobacco Company, have sent a letter to "The Times" declaring that the Prime Minister (Mr Neville Chamberlain) has been little influenced by the views of the chambers of commerce, and shipping and industrial organisations. » The new version of the defence tax adds to the bewildering complexities of the original proposal, and can onlv operate to the detriment of the national interest. # The signatories take the astonishing step of appealing to the Opposition to persuade the Government to have the proposals re-examined.