DEFENCE TAX WITHDRAWN

Press, Volume LXXIII, Issue 22109, 3 June 1937, Page 11

DEFENCE TAX WITHDRAWN

♦ Mr Chamberlain Meets Wishes of House APPRECIATION EXPRESSED BY LABOUR LEADER (BBITISB OFFICIAL WIBELBB3.) (Received June 2, 1.45 p.m.) RUGBY, June 1. The Prime Minister (Mr Neville Chamberlain), winding up the second reading debate of the Finance Bill in the House of Commons, announced the withdrawal of the proposed national defence contribution by way of a graduated tax on the growth of profits. Mr Chamberlain’s speech followed a sustained and powerful attack on tbe proposal, to which Mr Winston Churchill made an important contribution. After a general defence of his Budget proposals against Opposition criticism, the Prime Minister turned to part 3 of the Bill, against which the criticism had been directed, chiefly from the ranks of the Government’s own supporters. He said he had to admit that there appeared to be genuine alarm as a result of the proposed new tax, which had held up business to an extent which was very undesirable. When the Bill was in committee the ChancelIdr would not proceed with part 3, which provided for the national defence contribution, and in the meantime he could work out other proposals for a simpler tax upon the profits of industry. The tax would be designed to produce not less than £25,000,000 in a full year. Propriety of Method Understood Mr Chamberlain said he was told that the tax was expected to give a great deal of trouble, to cost a great deal of money, and to distract people from attending to the ordinary routine of business. On the other hand industry wished it to be understood that it did not challenge the propriety of finding the amount he wanted from profits. “It seems to me I should not only be something less than prudent, but I should be stupid if I were to persist in the particular method of getting what I want if I can get it by simpler methods and in larger amounts,” said the Prime Minister. That was what, after consultation with the Chancellor of the Exchequer (Sir John Simon) he proposed to do. He would not anticipate what the proposals of the Chancellor would be. This would require a new financial resolution, and the first intimation the House would have of the nature of the' new proposals would be when the Chancellor tabled a resolution. This would be on the earliest possible occasion. At the end of Mr Chamberlain’s speech the Leader of the Opposition (Mr C. R. Attlee) said he thought the members ought to recognise the way in which the Prime Minister had met the opinion of the House. They should recall that they had a Government that was responsive to the will of a democratically elected assembly. The Bill was read a second time. DECISION ACCLAIMED “ACT OF HIGH COURAGE” SPEEDY RECOVERY OF MARKETS EXPECTED (Received June 2, 8.10 p.m.) LONDON, June 1. The tremendous cheers which greeted the announcement of the Prime Minister' (Mr Neville Chamberlain) of the abandonment of the profit tax expressed the relief not only of members of the House of Commons but also of industrialists throughout Britain, It is expected that confidence will speedily return to the market^. The Conservative and Radical press combine in editorial approval. The “Daily Telegraph” says: “Mr Chamberlain has inaugurated his office as Prime Minister With an act of high courage.”