Revenue

– in the House of Commons at 12:00 am on 9th April 1957.

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On the basis of existing taxation, Inland Revenue duties at £2,876 million are expected to yield £171 million more in the coming year than last. From Income Tax we expect to collect £2,230 million—an increase of £116 million on last year. This increase is mainly due to the effect of increased wages and salaries. We also expect to get from Profits Tax an extra £60 million, mainly as a result of the increase in the rates made last year. Surtax, death duties, and stamp duties are estimated to produce about the same yield as last year.

The revenue from the Customs and Excise duties on the existing basis of taxation is estimated at £2,150 million this year compared with receipts of £2,101 million last year. None of the estimated yields shows a substantial rise or fall on last year's figures. I expect £93 million from the motor vehicle duties, £2 million more than the receipts last year.

The estimate for non-tax revenue is £268 million compared with £261 million last year. Under this heading, I must admit to one receipt which is not really revenue at all but merely a book-keeping windfall. As the Committee knows, the interest of £37 million due last December on the United States and Canadian loans was paid into a special account and was included in the charge for interest on debt in 1956–57. Agreement has since been reached with the United States and Canadian Governments for the deferment of this interest payment. After, as I hope, the United States Congress ratifies this agreement, the interest will be returned to the Exchequer from the special account. I am bound to include this £37 million in my estimate of miscellaneous revenue. But I hasten to assure the Committee that I shall not regard this windfall as having any significance when I come to consider my Budget proposals. Altogether, then, revenue is estimated at £5,387 million, £229 million higher than last year's yield.