Out of this surplus he proposes to pay half the
Alabama indemnity (21,600,000), leaving £3,146,000 for the relief of taxation. Mr. Lowe then gives up ld. in the income-tax, which will dispose of £1,425,000 in the current year ; reduces the sugar duties by one-half,—sugar being, as he said, " the delight of childhood and the solace of old age,"—thereby losing £1,430,000 in the year ; and grants a remission of duty to hotel-keepers on their waiters, which will cost 230,000 ; but the reduction of the sugar duty will add to the Excise by a like sum of £30,000, in consequence of the sugar used for the purpose of protecting malt. This disposes of £2,855,000 out of the £3,146,000 available for the reduction of taxation, leaving a proposed balance of £291,000, the estimated expenditure (increased by the half of the Alabama indemnity) being £73,471,000, and the estimated revenue, when reduced as proposed, being £73,762,000.
