| £ | |
|---|---|
| New Estimate of Revenue | 195,796,000 |
| New Estimate of Expenditure | 535,867,000 |
| Deficiency | 339,571,000 |
| Deficiency made up of— | |
| Loss of Revenue due to War | 11,128,000 |
| War Expenditure | 328,443,000 |
| Deficiency met by— | |
| New Taxation | 15,500,000 |
| Suspension of Sinking Fund | 2,750,000 |
| From Existing Loans | 91,000,000 |
| From New Loan | 230,321,000 |
THE NEW TAXES.
Income-tax and supertax doubled and charged on one-third of the current year's income. 17s. 3d. on barrel of beer, equal to ½d. on a half-pint. 3d. per lb. on tea, making the tax 8d.
INCOME TAX.
On earned incomes 1s. (instead of 9d.) for rest of current year and 1s. 6d. for 1915-16.
On unearned incomes 1s. 8d. (instead of 1s. 3d.) for rest of 1914-15 and 2s. 6d. for 1915-16.
YIELD OF NEW TAXATION.
| Rest of Year 1914-15. | 1915-16 | |
|---|---|---|
| £ | £ | |
| Income-tax | 11,000,000 | 38,750,000 |
| Supertax | 1,500,000 | 6,000,000 |
| Beer Duty | 2,500,000 | 17,600,000 |
| Tea | 950,000 | 3,200,000 |
| 15,950,000 | 65,550,000 | |
| Less concessions on Licence Duty | 450,000 | 500,000 |
| 15,500,000 | 65,050,000 |
The sacrifices demanded by the Budget were patriotically accepted by the nation, but concessions were made in regard to the income tax, supertax, and the beer tax. In the debate (Nov. 19) the Attorney-General explained that payers of income tax would be allowed, as they had been before 1907, to take into account their actual income for the year, and supertax payers would pay on the year's income instead of the three years' average, provided that in both cases their income had been reduced owing solely to the war; Mr. Henderson (Lab.) thought that the tea duty should have been increased by 2d. only, and that the only fair way to treat the working classes was by a graduated wage tax—a proposition which the Chancellor of the Exchequer accepted in principle, but declared to be impracticable at that time. Objections made to the increase of the beer tax were met (Nov. 24) by the concession of a rebate of 2s. per barrel up to March 31, 1916, and 1s. from that date to March 31, 1917, to enable the trade to adapt itself. The tax was calculated, it was explained, by gravity, not by bulk, and the publican would gain most on the lighter beers. The concession, however, was regarded by Mr. A. Chamberlain and others as inadequate. A concession in respect of income tax was made also to members of the Army and Navy and Red Cross ambulance workers, allowing them to pay on actual instead of on average income.