REVENUE AND EXPENDITURE

Press, Volume LXXXIII, Issue 25161, 17 April 1947, Page 7

REVENUE AND EXPENDITURE

Revenue from all sources in 1946-47 had been £3.341.000.000—£180,000.000 more than was expected. Expenditure had been £3,910,000.000—£23,000,000 more than was estimated.

“We have spent more than we expected in Greece,” said Dr. Dalton. *AII over the world prices have gone on rising, and we have had to provide a supplementary sum of £50,000,000 for food.”

The revenue from indirect taxation had been £1.184,000,000, about equal to what he had expected. Inland revenue had produced £1,777.000,000. which was £91.000,000 more than the estimate. Of this surplus, income tax accounted for £45,000.000, the excess profits tax for £33,000,000, stamp duties for £9.000.000, and death duties for £8.000,000.

Defence expenditure was £14,000,000 less than was anticipated, but civil expenditure was £27,000,000 more.

Dr. Dalton said that more money would be provided for housing, health services, family allowances, and land development. Those responsible for land development were being “prodded” because development was going too slowly. Motor taxes would be unchanged. Stamp duties relating to stocks and shares, with the exception of those relating ’to small transactions and those relating to the transfers of real property, would be doubled to 2 per cent. Legacy and succession duties would be doubled. The tax on distributed profits would be increased to 12$ per cent., and the tax on domestic heating, cooking, and other gas and electric appliances would be increased to 36 2-3 per cent, of the wholesale value.

Customs duty on imported tobacco would be increased by 50 per cent., thus raising the price of a packet of

20 cigarettes, which are now 2s 4d, to 3s 4d. Pipe tobacco would cost about Is 2d more an ounce.

“We are drawing improvidently on dollars to satisfy the insatiable demand for tobacco smoking, which is more than we can afford,” said Dr. Dalton. “I have set my target at a one-quarter reduction of the total national consumption of tobacco. Nothing else would be much good. I regard this economy as the minimum of patriotic duty.” Dr. Dalton said that he broke the news of the tobacco price increases “brutally,” but he regarded the saving of dollars as more important than an increase in revenue. Anyone with a grudge against him for his deliberately heavy increase might knock off smoking altogether. He estimated that on the basis of a 25 per cent, reduction of the tobacco consumption he would get £77.000.000 more revenue in a full year and £75.000.000 more this year, and save 30,000,000 dollars this year. Cries of “Shame!” from two Labour members * greeted Dr. Dalton’s announcement of the increased tobacco charges.

Dr. Dalton, dealing with social ser- ! vices, said: “During the year we made ; history. We mounted a great social programme which the electors voted for, and we are entitled to say that ■ the new Britain, as represented in this i House, has taken the cause of social security proudly in her stride.” Social services at £441.000,000 totalled £117,000.000 more than the previous year? Dr. Dalton said that some supplementary votes were less pleasing to him, including £39,000.000 for Germany in addition to the original estimate of £80,000,000. £19.000.000 extra for Greece, and £50.000,000 for food.